Correlation Between Anhui Jianghuai and ZYF Lopsking
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and ZYF Lopsking.
Diversification Opportunities for Anhui Jianghuai and ZYF Lopsking
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and ZYF is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile 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 Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and ZYF Lopsking
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 2.6 times more return on investment than ZYF Lopsking. However, Anhui Jianghuai is 2.6 times more volatile than ZYF Lopsking Aluminum. It trades about 0.13 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.04 per unit of risk. If you would invest 3,463 in Anhui Jianghuai Automobile on August 25, 2024 and sell it today you would earn a total of 422.00 from holding Anhui Jianghuai Automobile or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| ZYF Lopsking Aluminum |
Anhui Jianghuai and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and ZYF Lopsking
The main advantage of trading using opposite Anhui Jianghuai and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Lutian Machinery Co | Anhui Jianghuai vs. China Longyuan Power | Anhui Jianghuai vs. Changshu Tongrun Auto | Anhui Jianghuai vs. PetroChina Co Ltd |
| ZYF Lopsking vs. Zijin Mining Group | ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Shandong Gold 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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