Correlation Between Kuang Chi and ZYF Lopsking
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By analyzing existing cross correlation between Kuang Chi Technologies and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and ZYF Lopsking.
Diversification Opportunities for Kuang Chi and ZYF Lopsking
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and ZYF is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies 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 Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Kuang Chi and ZYF Lopsking
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.38 times more return on investment than ZYF Lopsking. However, Kuang Chi is 1.38 times more volatile than ZYF Lopsking Aluminum. It trades about 0.16 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about -0.02 per unit of risk. If you would invest 1,180 in Kuang Chi Technologies on October 17, 2024 and sell it today you would earn a total of 2,991 from holding Kuang Chi Technologies or generate 253.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Kuang Chi Technologies |
| ZYF Lopsking Aluminum |
Kuang Chi and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and ZYF Lopsking
The main advantage of trading using opposite Kuang Chi and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Liaoning Dingjide Petrochemical | Kuang Chi vs. Guizhou Chanhen Chemical | Kuang Chi vs. HeNan Splendor Science | Kuang Chi vs. China Everbright Bank |
| ZYF Lopsking vs. Xiangyu Medical Co | ZYF Lopsking vs. Montage Technology Co | ZYF Lopsking vs. Kuang Chi Technologies | ZYF Lopsking vs. Touchstone International Medical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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