Correlation Between Henan Lantian and ZYF Lopsking
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By analyzing existing cross correlation between Henan Lantian Gas and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Henan Lantian 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 Henan Lantian with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and ZYF Lopsking.
Diversification Opportunities for Henan Lantian and ZYF Lopsking
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henan and ZYF is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas 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 Henan Lantian 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 Henan Lantian Gas 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 Henan Lantian i.e., Henan Lantian and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Henan Lantian and ZYF Lopsking
Assuming the 90 days trading horizon Henan Lantian Gas is expected to generate 0.66 times more return on investment than ZYF Lopsking. However, Henan Lantian Gas is 1.52 times less risky than ZYF Lopsking. It trades about 0.06 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.0 per unit of risk. If you would invest 906.00 in Henan Lantian Gas on August 25, 2024 and sell it today you would earn a total of 242.00 from holding Henan Lantian Gas or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Henan Lantian Gas |
| ZYF Lopsking Aluminum |
Henan Lantian and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and ZYF Lopsking
The main advantage of trading using opposite Henan Lantian and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian 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.| Henan Lantian vs. Cambricon Technologies Corp | Henan Lantian vs. Loongson Technology Corp | Henan Lantian vs. Chongqing Road Bridge | Henan Lantian vs. Shenzhen Fortune Trend |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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