Correlation Between Changchun Faway and ZYF Lopsking
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun Faway Automobile and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and ZYF Lopsking.
Diversification Opportunities for Changchun Faway and ZYF Lopsking
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and ZYF is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway 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 Changchun Faway 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 Changchun Faway 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 Changchun Faway i.e., Changchun Faway and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Changchun Faway and ZYF Lopsking
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.78 times more return on investment than ZYF Lopsking. However, Changchun Faway Automobile is 1.29 times less risky than ZYF Lopsking. It trades about 0.03 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.01 per unit of risk. If you would invest 849.00 in Changchun Faway Automobile on August 25, 2024 and sell it today you would earn a total of 126.00 from holding Changchun Faway Automobile or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Changchun Faway Auto |
| ZYF Lopsking Aluminum |
Changchun Faway and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and ZYF Lopsking
The main advantage of trading using opposite Changchun Faway and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. Shenzhen Zhongzhuang Construction | Changchun Faway vs. Kuangda Technology Group | Changchun Faway vs. Glodon Software Co | Changchun Faway vs. Hubei Forbon Technology |
| ZYF Lopsking vs. Guangzhou Automobile Group | ZYF Lopsking vs. Songz Automobile Air | ZYF Lopsking vs. Zhejiang Yongjin Metal | ZYF Lopsking vs. Anhui Jianghuai Automobile |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |