Correlation Between ZYF Lopsking and Citic Guoan
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Citic Guoan Wine, you can compare the effects of market volatilities on ZYF Lopsking and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Citic Guoan.
Diversification Opportunities for ZYF Lopsking and Citic Guoan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZYF and Citic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Citic Guoan go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Citic Guoan
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 0.82 times more return on investment than Citic Guoan. However, ZYF Lopsking Aluminum is 1.23 times less risky than Citic Guoan. It trades about 0.09 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.03 per unit of risk. If you would invest 564.00 in ZYF Lopsking Aluminum on August 28, 2024 and sell it today you would earn a total of 25.00 from holding ZYF Lopsking Aluminum or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Citic Guoan Wine
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Citic Guoan Wine |
ZYF Lopsking and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Citic Guoan
The main advantage of trading using opposite ZYF Lopsking and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Shandong Gold Mining | ZYF Lopsking vs. Rongsheng Petrochemical Co | ZYF Lopsking vs. Inner Mongolia BaoTou |
| Citic Guoan vs. Rising Nonferrous Metals | Citic Guoan vs. Shanghai Yanpu Metal | Citic Guoan vs. Glodon Software Co | Citic Guoan vs. ZYF Lopsking Aluminum |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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