Correlation Between ZYF Lopsking and Anhui Transport
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Anhui Transport Consulting, you can compare the effects of market volatilities on ZYF Lopsking and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Anhui Transport.
Diversification Opportunities for ZYF Lopsking and Anhui Transport
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Anhui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Anhui Transport go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Anhui Transport
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 2.25 times less return on investment than Anhui Transport. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.19 times less risky than Anhui Transport. It trades about 0.14 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Anhui Transport Consulting on December 1, 2024 and sell it today you would earn a total of 56.00 from holding Anhui Transport Consulting or generate 6.41% 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. Anhui Transport Consulting
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Anhui Transport Cons |
ZYF Lopsking and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Anhui Transport
The main advantage of trading using opposite ZYF Lopsking and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| ZYF Lopsking vs. China Sports Industry | ZYF Lopsking vs. Jiangsu Jinling Sports | ZYF Lopsking vs. HanS Laser Tech | ZYF Lopsking vs. Hefei Metalforming Mach |
| Anhui Transport vs. Aluminum Corp of | Anhui Transport vs. HeBei Jinniu Chemical | Anhui Transport vs. Ningbo Ligong Online | Anhui Transport 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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