Correlation Between Zhengzhou Qianweiyangchu and Guilin Seamild
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Guilin Seamild Foods, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu and Guilin Seamild 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 Zhengzhou Qianweiyangchu with a short position of Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Guilin Seamild.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Guilin Seamild
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhengzhou and Guilin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food are associated (or correlated) with Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Guilin Seamild go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Guilin Seamild
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to under-perform the Guilin Seamild. In addition to that, Zhengzhou Qianweiyangchu is 1.14 times more volatile than Guilin Seamild Foods. It trades about -0.05 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.0 per unit of volatility. If you would invest 1,570 in Guilin Seamild Foods on August 31, 2024 and sell it today you would lose (114.00) from holding Guilin Seamild Foods or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Guilin Seamild Foods
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Guilin Seamild Foods |
Zhengzhou Qianweiyangchu and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Guilin Seamild
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Zhengzhou Qianweiyangchu vs. Lutian Machinery Co | Zhengzhou Qianweiyangchu vs. PetroChina Co Ltd | Zhengzhou Qianweiyangchu vs. Bank of China | Zhengzhou Qianweiyangchu vs. Gansu Jiu Steel |
| Guilin Seamild vs. Lutian Machinery Co | Guilin Seamild vs. PetroChina Co Ltd | Guilin Seamild vs. Bank of China | Guilin Seamild vs. Gansu Jiu Steel |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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