Correlation Between ZYF Lopsking and Ye Chiu
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Ye Chiu Metal, you can compare the effects of market volatilities on ZYF Lopsking and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Ye Chiu.
Diversification Opportunities for ZYF Lopsking and Ye Chiu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and 601388 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Ye Chiu go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Ye Chiu
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 1.1 times more return on investment than Ye Chiu. However, ZYF Lopsking is 1.1 times more volatile than Ye Chiu Metal. It trades about 0.01 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.02 per unit of risk. If you would invest 592.00 in ZYF Lopsking Aluminum on October 19, 2024 and sell it today you would lose (62.00) from holding ZYF Lopsking Aluminum or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Ye Chiu Metal
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Ye Chiu Metal |
ZYF Lopsking and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Ye Chiu
The main advantage of trading using opposite ZYF Lopsking and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| ZYF Lopsking vs. Pengxin International Mining | ZYF Lopsking vs. China Minmetals Rare | ZYF Lopsking vs. Western Metal Materials | ZYF Lopsking vs. Soochow Suzhou Industrial |
| Ye Chiu vs. Everdisplay Optronics Shanghai | Ye Chiu vs. Huasi Agricultural Development | Ye Chiu vs. New Hope Dairy | Ye Chiu vs. Ningbo Construction 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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