Correlation Between Zhongjing Food and Shandong Link
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By analyzing existing cross correlation between Zhongjing Food Co and Shandong Link Science, you can compare the effects of market volatilities on Zhongjing Food and Shandong Link 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 Zhongjing Food with a short position of Shandong Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Shandong Link.
Diversification Opportunities for Zhongjing Food and Shandong Link
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongjing and Shandong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Shandong Link Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Link Science and Zhongjing 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 Zhongjing Food Co are associated (or correlated) with Shandong Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Link Science has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Shandong Link go up and down completely randomly.
Pair Corralation between Zhongjing Food and Shandong Link
Assuming the 90 days trading horizon Zhongjing Food Co is expected to under-perform the Shandong Link. But the stock apears to be less risky and, when comparing its historical volatility, Zhongjing Food Co is 1.35 times less risky than Shandong Link. The stock trades about -0.09 of its potential returns per unit of risk. The Shandong Link Science is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,965 in Shandong Link Science on November 3, 2024 and sell it today you would earn a total of 132.00 from holding Shandong Link Science or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Shandong Link Science
Performance |
| Timeline |
| Zhongjing Food |
| Shandong Link Science |
Zhongjing Food and Shandong Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Shandong Link
The main advantage of trading using opposite Zhongjing Food and Shandong Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Shandong Link 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 Shandong Link will offset losses from the drop in Shandong Link's long position.| Zhongjing Food vs. Duzhe Publishing Media | Zhongjing Food vs. Shanghai Action Education | Zhongjing Food vs. COL Digital Publishing | Zhongjing Food vs. Jiangsu Phoenix Publishing |
| Shandong Link vs. Zijin Mining Group | Shandong Link vs. Wanhua Chemical Group | Shandong Link vs. Baoshan Iron Steel | Shandong Link vs. Shandong Gold Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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