Correlation Between Gansu Huangtai and Zhongyin Babi
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Zhongyin Babi Food, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Zhongyin Babi.
Diversification Opportunities for Gansu Huangtai and Zhongyin Babi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Zhongyin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Zhongyin Babi
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.98 times more return on investment than Zhongyin Babi. However, Gansu Huangtai is 1.98 times more volatile than Zhongyin Babi Food. It trades about 0.08 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.08 per unit of risk. If you would invest 1,323 in Gansu Huangtai Wine marketing on August 28, 2024 and sell it today you would earn a total of 157.00 from holding Gansu Huangtai Wine marketing or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Zhongyin Babi Food
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Zhongyin Babi Food |
Gansu Huangtai and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Zhongyin Babi
The main advantage of trading using opposite Gansu Huangtai and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Construction Bank | Gansu Huangtai vs. Bank of China | Gansu Huangtai vs. Agricultural Bank of |
| Zhongyin Babi vs. China Petroleum Chemical | Zhongyin Babi vs. PetroChina Co Ltd | Zhongyin Babi vs. China State Construction | Zhongyin Babi vs. China Railway Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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