Correlation Between Inner Mongolia and ZYF Lopsking
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By analyzing existing cross correlation between Inner Mongolia BaoTou and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and ZYF Lopsking.
Diversification Opportunities for Inner Mongolia and ZYF Lopsking
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inner and ZYF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou 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 Inner Mongolia 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 Inner Mongolia BaoTou 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 Inner Mongolia i.e., Inner Mongolia and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Inner Mongolia and ZYF Lopsking
Assuming the 90 days trading horizon Inner Mongolia is expected to generate 1.13 times less return on investment than ZYF Lopsking. But when comparing it to its historical volatility, Inner Mongolia BaoTou is 1.61 times less risky than ZYF Lopsking. It trades about 0.02 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 592.00 in ZYF Lopsking Aluminum on August 29, 2024 and sell it today you would lose (17.00) from holding ZYF Lopsking Aluminum or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| ZYF Lopsking Aluminum |
Inner Mongolia and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and ZYF Lopsking
The main advantage of trading using opposite Inner Mongolia and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Xiangyang Automobile Bearing | Inner Mongolia vs. Heren Health Co | Inner Mongolia vs. Sinomach Automobile Co | Inner Mongolia vs. Anhui Jianghuai Automobile |
| ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Shandong Gold Mining | ZYF Lopsking vs. Rongsheng Petrochemical Co | ZYF Lopsking vs. Inner Mongolia BaoTou |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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