Correlation Between ZYF Lopsking and Zhejiang Yongjin
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on ZYF Lopsking and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Zhejiang Yongjin.
Diversification Opportunities for ZYF Lopsking and Zhejiang Yongjin
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZYF and Zhejiang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Zhejiang Yongjin
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 1.86 times more return on investment than Zhejiang Yongjin. However, ZYF Lopsking is 1.86 times more volatile than Zhejiang Yongjin Metal. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.02 per unit of risk. If you would invest 530.00 in ZYF Lopsking Aluminum on October 23, 2024 and sell it today you would earn a total of 53.00 from holding ZYF Lopsking Aluminum or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Zhejiang Yongjin Metal |
ZYF Lopsking and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Zhejiang Yongjin
The main advantage of trading using opposite ZYF Lopsking and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| ZYF Lopsking vs. Changchun UP Optotech | ZYF Lopsking vs. HUAQIN TECHNOLOGY LTD | ZYF Lopsking vs. Iat Automobile Technology | ZYF Lopsking vs. Guangzhou Automobile Group |
| Zhejiang Yongjin vs. Bangyan Technology Co | Zhejiang Yongjin vs. Uxi Unicomp Technology | Zhejiang Yongjin vs. Shenzhen SDG Information | Zhejiang Yongjin vs. Invengo Information Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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