Correlation Between Guangzhou Seagull and Zhongyin Babi
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Zhongyin Babi Food, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Zhongyin Babi.
Diversification Opportunities for Guangzhou Seagull and Zhongyin Babi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhongyin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen 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 Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Zhongyin Babi
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.22 times more return on investment than Zhongyin Babi. However, Guangzhou Seagull is 1.22 times more volatile than Zhongyin Babi Food. It trades about -0.02 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.04 per unit of risk. If you would invest 470.00 in Guangzhou Seagull Kitchen on October 12, 2024 and sell it today you would lose (170.00) from holding Guangzhou Seagull Kitchen or give up 36.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Zhongyin Babi Food
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Zhongyin Babi Food |
Guangzhou Seagull and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Zhongyin Babi
The main advantage of trading using opposite Guangzhou Seagull and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. Unisplendour Corp | Guangzhou Seagull vs. Zhejiang JIULI Hi tech | Guangzhou Seagull vs. Ningbo Fujia Industrial | Guangzhou Seagull vs. FSPG Hi Tech Co |
| Zhongyin Babi vs. Hubeiyichang Transportation Group | Zhongyin Babi vs. Fujian Longzhou Transportation | Zhongyin Babi vs. Hainan Haiqi Transportation | Zhongyin Babi vs. Kidswant Children Products |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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