Correlation Between ZYF Lopsking and Changchun Faway
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Changchun Faway Automobile, you can compare the effects of market volatilities on ZYF Lopsking and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Changchun Faway.
Diversification Opportunities for ZYF Lopsking and Changchun Faway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Changchun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Changchun Faway go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Changchun Faway
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 1.0 times more return on investment than Changchun Faway. However, ZYF Lopsking Aluminum is 1.0 times less risky than Changchun Faway. It trades about 0.05 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about -0.01 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 11.00 from holding ZYF Lopsking Aluminum or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Changchun Faway Automobile
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Changchun Faway Auto |
ZYF Lopsking and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Changchun Faway
The main advantage of trading using opposite ZYF Lopsking and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway'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 |
| Changchun Faway vs. Miracll Chemicals Co | Changchun Faway vs. Guangzhou KingTeller Technology | Changchun Faway vs. Nantong Jiangshan Agrochemical | Changchun Faway vs. Shanghai Jinfeng Wine |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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