Correlation Between Shenyang Huitian and Zhongyin Babi
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Zhongyin Babi Food, you can compare the effects of market volatilities on Shenyang Huitian and Zhongyin Babi 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 Shenyang Huitian with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Zhongyin Babi.
Diversification Opportunities for Shenyang Huitian and Zhongyin Babi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Zhongyin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Zhongyin Babi
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.54 times more return on investment than Zhongyin Babi. However, Shenyang Huitian is 1.54 times more volatile than Zhongyin Babi Food. It trades about 0.09 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.02 per unit of risk. If you would invest 248.00 in Shenyang Huitian Thermal on September 3, 2024 and sell it today you would earn a total of 122.00 from holding Shenyang Huitian Thermal or generate 49.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.38% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Zhongyin Babi Food
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Zhongyin Babi Food |
Shenyang Huitian and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Zhongyin Babi
The main advantage of trading using opposite Shenyang Huitian and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
| Zhongyin Babi vs. Beijing Wantai Biological | Zhongyin Babi vs. Aluminum Corp of | Zhongyin Babi vs. COL Digital Publishing | Zhongyin Babi vs. Shaanxi Meineng Clean |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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