Correlation Between Yankershop Food and Zangge Holding
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By analyzing existing cross correlation between Yankershop Food Co and Zangge Holding Co, you can compare the effects of market volatilities on Yankershop Food and Zangge Holding 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 Yankershop Food with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yankershop Food and Zangge Holding.
Diversification Opportunities for Yankershop Food and Zangge Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yankershop and Zangge is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yankershop Food Co and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Yankershop Food 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 Yankershop Food Co are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Yankershop Food i.e., Yankershop Food and Zangge Holding go up and down completely randomly.
Pair Corralation between Yankershop Food and Zangge Holding
Assuming the 90 days trading horizon Yankershop Food Co is expected to generate 1.2 times more return on investment than Zangge Holding. However, Yankershop Food is 1.2 times more volatile than Zangge Holding Co. It trades about 0.04 of its potential returns per unit of risk. Zangge Holding Co is currently generating about 0.03 per unit of risk. If you would invest 4,738 in Yankershop Food Co on September 26, 2024 and sell it today you would earn a total of 1,458 from holding Yankershop Food Co or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yankershop Food Co vs. Zangge Holding Co
Performance |
| Timeline |
| Yankershop Food |
| Zangge Holding |
Yankershop Food and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yankershop Food and Zangge Holding
The main advantage of trading using opposite Yankershop Food and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yankershop Food position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Yankershop Food vs. Ming Yang Smart | Yankershop Food vs. 159681 | Yankershop Food vs. 159005 | Yankershop Food vs. Loctek Ergonomic Technology |
| Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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