Correlation Between Shenzhen MTC and ZYF Lopsking
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By analyzing existing cross correlation between Shenzhen MTC Co and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Shenzhen MTC and ZYF Lopsking 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 Shenzhen MTC with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and ZYF Lopsking.
Diversification Opportunities for Shenzhen MTC and ZYF Lopsking
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and ZYF is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC Co and ZYF Lopsking Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZYF Lopsking Aluminum and Shenzhen MTC 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 Shenzhen MTC Co are associated (or correlated) with ZYF Lopsking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZYF Lopsking Aluminum has no effect on the direction of Shenzhen MTC i.e., Shenzhen MTC and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Shenzhen MTC and ZYF Lopsking
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to generate 1.24 times more return on investment than ZYF Lopsking. However, Shenzhen MTC is 1.24 times more volatile than ZYF Lopsking Aluminum. It trades about -0.06 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about -0.18 per unit of risk. If you would invest 548.00 in Shenzhen MTC Co on November 22, 2024 and sell it today you would lose (11.00) from holding Shenzhen MTC Co or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Shenzhen MTC Co vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Shenzhen MTC |
| ZYF Lopsking Aluminum |
Shenzhen MTC and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and ZYF Lopsking
The main advantage of trading using opposite Shenzhen MTC and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC position performs unexpectedly, ZYF Lopsking 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 ZYF Lopsking will offset losses from the drop in ZYF Lopsking's long position.| Shenzhen MTC vs. Wonders Information | Shenzhen MTC vs. Guangzhou Ruoyuchen Information | Shenzhen MTC vs. Talkweb Information System | Shenzhen MTC vs. Anhui Deli Household |
| ZYF Lopsking vs. Allwin Telecommunication Co | ZYF Lopsking vs. Nanjing Putian Telecommunications | ZYF Lopsking vs. Fujian Oriental Silver | ZYF Lopsking vs. Zhengzhou Coal Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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