Correlation Between Zhejiang Yayi and ZYF Lopsking
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By analyzing existing cross correlation between Zhejiang Yayi Metal and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and ZYF Lopsking.
Diversification Opportunities for Zhejiang Yayi and ZYF Lopsking
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and ZYF is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal 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 Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and ZYF Lopsking
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.35 times more return on investment than ZYF Lopsking. However, Zhejiang Yayi is 1.35 times more volatile than ZYF Lopsking Aluminum. It trades about 0.1 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.03 per unit of risk. If you would invest 1,934 in Zhejiang Yayi Metal on September 3, 2024 and sell it today you would earn a total of 739.00 from holding Zhejiang Yayi Metal or generate 38.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| ZYF Lopsking Aluminum |
Zhejiang Yayi and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and ZYF Lopsking
The main advantage of trading using opposite Zhejiang Yayi and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
| ZYF Lopsking vs. Zijin Mining Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Hoshine Silicon Ind |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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