Correlation Between ZYF Lopsking and Guangdong Shenglu
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on ZYF Lopsking and Guangdong Shenglu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ZYF Lopsking with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Guangdong Shenglu.
Diversification Opportunities for ZYF Lopsking and Guangdong Shenglu
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Guangdong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and ZYF Lopsking is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ZYF Lopsking Aluminum are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Guangdong Shenglu
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 0.76 times more return on investment than Guangdong Shenglu. However, ZYF Lopsking Aluminum is 1.31 times less risky than Guangdong Shenglu. It trades about -0.26 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.2 per unit of risk. If you would invest 601.00 in ZYF Lopsking Aluminum on October 17, 2024 and sell it today you would lose (75.00) from holding ZYF Lopsking Aluminum or give up 12.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Guangdong Shenglu |
ZYF Lopsking and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Guangdong Shenglu
The main advantage of trading using opposite ZYF Lopsking and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Guangdong Shenglu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| ZYF Lopsking vs. Longjian Road Bridge | ZYF Lopsking vs. Xinjiang Beixin RoadBridge | ZYF Lopsking vs. Rising Nonferrous Metals | ZYF Lopsking vs. Hubeiyichang Transportation Group |
| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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