Correlation Between Zhejiang Yongjin and ZYF Lopsking
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Zhejiang Yongjin 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 Yongjin with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and ZYF Lopsking.
Diversification Opportunities for Zhejiang Yongjin and ZYF Lopsking
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and ZYF is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin 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 Yongjin 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 Yongjin 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 Yongjin i.e., Zhejiang Yongjin and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and ZYF Lopsking
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the ZYF Lopsking. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yongjin Metal is 1.35 times less risky than ZYF Lopsking. The stock trades about -0.19 of its potential returns per unit of risk. The ZYF Lopsking Aluminum is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 564.00 in ZYF Lopsking Aluminum on August 29, 2024 and sell it today you would earn a total of 11.00 from holding ZYF Lopsking Aluminum or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| ZYF Lopsking Aluminum |
Zhejiang Yongjin and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and ZYF Lopsking
The main advantage of trading using opposite Zhejiang Yongjin and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin 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 Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Shandong Gold Mining | Zhejiang Yongjin vs. Rongsheng Petrochemical Co | Zhejiang Yongjin vs. Inner Mongolia BaoTou |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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