Correlation Between ZYF Lopsking and Shenzhen Kexin
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shenzhen Kexin Communication, you can compare the effects of market volatilities on ZYF Lopsking and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shenzhen Kexin.
Diversification Opportunities for ZYF Lopsking and Shenzhen Kexin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZYF and Shenzhen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shenzhen Kexin
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 0.75 times more return on investment than Shenzhen Kexin. However, ZYF Lopsking Aluminum is 1.33 times less risky than Shenzhen Kexin. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.01 per unit of risk. If you would invest 605.00 in ZYF Lopsking Aluminum on November 19, 2024 and sell it today you would lose (46.00) from holding ZYF Lopsking Aluminum or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shenzhen Kexin Commu |
ZYF Lopsking and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shenzhen Kexin
The main advantage of trading using opposite ZYF Lopsking and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| ZYF Lopsking vs. Shenzhen SDG Information | ZYF Lopsking vs. Longmaster Information Tech | ZYF Lopsking vs. Emdoor Information Co | ZYF Lopsking vs. AVCON Information Tech |
| Shenzhen Kexin vs. Tianjin Silvery Dragon | Shenzhen Kexin vs. Hainan Mining Co | Shenzhen Kexin vs. Chengdu Xingrong Investment | Shenzhen Kexin vs. Henan Shuanghui Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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