Correlation Between Shenzhen Coship and Zhongyin Babi
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By analyzing existing cross correlation between Shenzhen Coship Electronics and Zhongyin Babi Food, you can compare the effects of market volatilities on Shenzhen Coship 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 Shenzhen Coship with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Coship and Zhongyin Babi.
Diversification Opportunities for Shenzhen Coship and Zhongyin Babi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Zhongyin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Coship Electronics 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 Shenzhen Coship 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 Shenzhen Coship Electronics 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 Shenzhen Coship i.e., Shenzhen Coship and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Shenzhen Coship and Zhongyin Babi
Assuming the 90 days trading horizon Shenzhen Coship Electronics is expected to under-perform the Zhongyin Babi. In addition to that, Shenzhen Coship is 1.04 times more volatile than Zhongyin Babi Food. It trades about -0.05 of its total potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.07 per unit of volatility. If you would invest 1,749 in Zhongyin Babi Food on October 29, 2024 and sell it today you would earn a total of 63.00 from holding Zhongyin Babi Food or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Coship Electronics vs. Zhongyin Babi Food
Performance |
| Timeline |
| Shenzhen Coship Elec |
| Zhongyin Babi Food |
Shenzhen Coship and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Coship and Zhongyin Babi
The main advantage of trading using opposite Shenzhen Coship and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Coship 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.| Shenzhen Coship vs. Hubeiyichang Transportation Group | Shenzhen Coship vs. Shuhua Sports Co | Shenzhen Coship vs. Chengdu Xinzhu RoadBridge | Shenzhen Coship vs. Silkroad Visual Technology |
| Zhongyin Babi vs. Tibet Huayu Mining | Zhongyin Babi vs. Ningbo Kangqiang Electronics | Zhongyin Babi vs. Hefei Metalforming Mach | Zhongyin Babi vs. Shengda Mining Co |
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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