Correlation Between ZYF Lopsking and Bright Real
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Bright Real Estate, you can compare the effects of market volatilities on ZYF Lopsking and Bright Real 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 Bright Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Bright Real.
Diversification Opportunities for ZYF Lopsking and Bright Real
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZYF and Bright is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Bright Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Real Estate 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 Bright Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Real Estate has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Bright Real go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Bright Real
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 6.85 times less return on investment than Bright Real. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.03 times less risky than Bright Real. It trades about 0.01 of its potential returns per unit of risk. Bright Real Estate is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Bright Real Estate on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Bright Real Estate or generate 65.52% 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. Bright Real Estate
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Bright Real Estate |
ZYF Lopsking and Bright Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Bright Real
The main advantage of trading using opposite ZYF Lopsking and Bright Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Bright Real 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 Bright Real will offset losses from the drop in Bright Real's long position.| ZYF Lopsking vs. Zijin Mining Group | ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Rongsheng Petrochemical Co |
| Bright Real vs. ZYF Lopsking Aluminum | Bright Real vs. Shuhua Sports Co | Bright Real vs. Tongling Nonferrous Metals | Bright Real vs. Sportsoul Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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