Correlation Between Zhongfu Information and Beijing Sanyuan
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By analyzing existing cross correlation between Zhongfu Information and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Zhongfu Information and Beijing Sanyuan 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 Zhongfu Information with a short position of Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Beijing Sanyuan.
Diversification Opportunities for Zhongfu Information and Beijing Sanyuan
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongfu and Beijing is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods and Zhongfu Information 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 Zhongfu Information are associated (or correlated) with Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Zhongfu Information and Beijing Sanyuan
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.62 times more return on investment than Beijing Sanyuan. However, Zhongfu Information is 1.62 times more volatile than Beijing Sanyuan Foods. It trades about -0.1 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.28 per unit of risk. If you would invest 1,785 in Zhongfu Information on October 20, 2024 and sell it today you would lose (172.00) from holding Zhongfu Information or give up 9.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Zhongfu Information |
| Beijing Sanyuan Foods |
Zhongfu Information and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Beijing Sanyuan
The main advantage of trading using opposite Zhongfu Information and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Zhongfu Information vs. APT Medical | Zhongfu Information vs. HaiXin Foods Co | Zhongfu Information vs. Cowealth Medical China | Zhongfu Information vs. Xiwang Foodstuffs Co |
| Beijing Sanyuan vs. Fibocom Wireless | Beijing Sanyuan vs. Emdoor Information Co | Beijing Sanyuan vs. Zhongfu Information | Beijing Sanyuan vs. Dawning Information Industry |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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