Correlation Between Beijing Bashi and ZYF Lopsking
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By analyzing existing cross correlation between Beijing Bashi Media and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Beijing Bashi 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 Beijing Bashi with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and ZYF Lopsking.
Diversification Opportunities for Beijing Bashi and ZYF Lopsking
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and ZYF is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media 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 Beijing Bashi 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 Beijing Bashi Media 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 Beijing Bashi i.e., Beijing Bashi and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Beijing Bashi and ZYF Lopsking
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 2.25 times more return on investment than ZYF Lopsking. However, Beijing Bashi is 2.25 times more volatile than ZYF Lopsking Aluminum. It trades about 0.04 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about -0.17 per unit of risk. If you would invest 476.00 in Beijing Bashi Media on September 29, 2024 and sell it today you would earn a total of 10.00 from holding Beijing Bashi Media or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bashi Media vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Beijing Bashi Media |
| ZYF Lopsking Aluminum |
Beijing Bashi and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and ZYF Lopsking
The main advantage of trading using opposite Beijing Bashi and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi 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.| Beijing Bashi vs. Kweichow Moutai Co | Beijing Bashi vs. NAURA Technology Group | Beijing Bashi vs. Zhejiang Orient Gene | Beijing Bashi vs. APT Medical |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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