Correlation Between Yingde Greatchem and Zhongyin Babi
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Zhongyin Babi Food, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Zhongyin Babi.
Diversification Opportunities for Yingde Greatchem and Zhongyin Babi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yingde and Zhongyin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Zhongyin Babi
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Zhongyin Babi. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.29 times less risky than Zhongyin Babi. The stock trades about 0.0 of its potential returns per unit of risk. The Zhongyin Babi Food is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,548 in Zhongyin Babi Food on October 14, 2024 and sell it today you would earn a total of 70.00 from holding Zhongyin Babi Food or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Zhongyin Babi Food
Performance |
| Timeline |
| Yingde Greatchem Che |
| Zhongyin Babi Food |
Yingde Greatchem and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Zhongyin Babi
The main advantage of trading using opposite Yingde Greatchem and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Great Sun Foods Co | Yingde Greatchem vs. AVIC Fund Management | Yingde Greatchem vs. HaiXin Foods Co | Yingde Greatchem vs. New Hope Dairy |
| Zhongyin Babi vs. China World Trade | Zhongyin Babi vs. Yingde Greatchem Chemicals | Zhongyin Babi vs. Do Fluoride Chemicals Co | Zhongyin Babi vs. Huatian Hotel Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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