Correlation Between ZYF Lopsking and Tianshan Aluminum
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Tianshan Aluminum Group, you can compare the effects of market volatilities on ZYF Lopsking and Tianshan Aluminum 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 Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Tianshan Aluminum.
Diversification Opportunities for ZYF Lopsking and Tianshan Aluminum
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Tianshan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum 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 Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Tianshan Aluminum
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 1.11 times less return on investment than Tianshan Aluminum. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.18 times less risky than Tianshan Aluminum. It trades about 0.01 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 810.00 in Tianshan Aluminum Group on September 1, 2024 and sell it today you would lose (3.00) from holding Tianshan Aluminum Group or give up 0.37% 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. Tianshan Aluminum Group
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Tianshan Aluminum |
ZYF Lopsking and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Tianshan Aluminum
The main advantage of trading using opposite ZYF Lopsking and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| ZYF Lopsking vs. GreenTech Environmental Co | ZYF Lopsking vs. Shenzhen MYS Environmental | ZYF Lopsking vs. Dalian Zeus Entertainment | ZYF Lopsking vs. Lingyuan Iron Steel |
| Tianshan Aluminum vs. BYD Co Ltd | Tianshan Aluminum vs. China Mobile Limited | Tianshan Aluminum vs. Agricultural Bank of | Tianshan Aluminum vs. Industrial and Commercial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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