Correlation Between ZYF Lopsking and New Hope
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and New Hope Dairy, you can compare the effects of market volatilities on ZYF Lopsking and New Hope 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 New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and New Hope.
Diversification Opportunities for ZYF Lopsking and New Hope
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZYF and New is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and New Hope go up and down completely randomly.
Pair Corralation between ZYF Lopsking and New Hope
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to under-perform the New Hope. But the stock apears to be less risky and, when comparing its historical volatility, ZYF Lopsking Aluminum is 1.18 times less risky than New Hope. The stock trades about -0.06 of its potential returns per unit of risk. The New Hope Dairy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,301 in New Hope Dairy on October 30, 2024 and sell it today you would earn a total of 146.00 from holding New Hope Dairy or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. New Hope Dairy
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| New Hope Dairy |
ZYF Lopsking and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and New Hope
The main advantage of trading using opposite ZYF Lopsking and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| ZYF Lopsking vs. Guangzhou KingTeller Technology | ZYF Lopsking vs. Fujian Nanwang Environment | ZYF Lopsking vs. Hainan Airlines Co | ZYF Lopsking vs. City Development Environment |
| New Hope vs. Lier Chemical Co | New Hope vs. Maoming Petro Chemical Shihua | New Hope vs. Hengli Petrochemical Co | New Hope vs. Liuzhou Chemical Industry |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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