Correlation Between ZYF Lopsking and China World
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and China World Trade, you can compare the effects of market volatilities on ZYF Lopsking and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and China World.
Diversification Opportunities for ZYF Lopsking and China World
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZYF and China is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and China World go up and down completely randomly.
Pair Corralation between ZYF Lopsking and China World
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 5.33 times less return on investment than China World. In addition to that, ZYF Lopsking is 1.62 times more volatile than China World Trade. It trades about 0.01 of its total potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of volatility. If you would invest 1,670 in China World Trade on October 11, 2024 and sell it today you would earn a total of 675.00 from holding China World Trade or generate 40.42% 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. China World Trade
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| China World Trade |
ZYF Lopsking and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and China World
The main advantage of trading using opposite ZYF Lopsking and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| ZYF Lopsking vs. Anhui Transport Consulting | ZYF Lopsking vs. Heilongjiang Transport Development | ZYF Lopsking vs. Zhejiang Yongjin Metal | ZYF Lopsking vs. Shanghai Yanpu Metal |
| China World vs. Strait Innovation Internet | China World vs. Hubeiyichang Transportation Group | China World vs. Fujian Longzhou Transportation | China World vs. Allwin Telecommunication 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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