Correlation Between Guangdong Shenglu and Zhongyin Babi
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Zhongyin Babi Food, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Zhongyin Babi.
Diversification Opportunities for Guangdong Shenglu and Zhongyin Babi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Zhongyin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Zhongyin Babi
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Zhongyin Babi. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.49 times less risky than Zhongyin Babi. The stock trades about -0.36 of its potential returns per unit of risk. The Zhongyin Babi Food is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,753 in Zhongyin Babi Food on October 9, 2024 and sell it today you would lose (103.00) from holding Zhongyin Babi Food or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Zhongyin Babi Food
Performance |
| Timeline |
| Guangdong Shenglu |
| Zhongyin Babi Food |
Guangdong Shenglu and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Zhongyin Babi
The main advantage of trading using opposite Guangdong Shenglu and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. Zhejiang Orient Gene | Guangdong Shenglu vs. APT Medical |
| Zhongyin Babi vs. Tibet Huayu Mining | Zhongyin Babi vs. Qinghaihuading Industrial Co | Zhongyin Babi vs. Masterwork Machinery | Zhongyin Babi vs. Lutian Machinery 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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