Correlation Between Zhongjing Food and Yankershop Food
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By analyzing existing cross correlation between Zhongjing Food Co and Yankershop Food Co, you can compare the effects of market volatilities on Zhongjing Food and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Yankershop Food.
Diversification Opportunities for Zhongjing Food and Yankershop Food
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongjing and Yankershop is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Yankershop Food go up and down completely randomly.
Pair Corralation between Zhongjing Food and Yankershop Food
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 0.75 times more return on investment than Yankershop Food. However, Zhongjing Food Co is 1.34 times less risky than Yankershop Food. It trades about -0.09 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.42 per unit of risk. If you would invest 3,104 in Zhongjing Food Co on November 3, 2024 and sell it today you would lose (95.00) from holding Zhongjing Food Co or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Yankershop Food Co
Performance |
| Timeline |
| Zhongjing Food |
| Yankershop Food |
Zhongjing Food and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Yankershop Food
The main advantage of trading using opposite Zhongjing Food and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food'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 |
| Yankershop Food vs. China Longyuan Power | Yankershop Food vs. PetroChina Co Ltd | Yankershop Food vs. Guangxi Guiguan Electric | Yankershop Food vs. Yantai North Andre |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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