Correlation Between Zhongjing Food and Guilin Seamild
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By analyzing existing cross correlation between Zhongjing Food Co and Guilin Seamild Foods, you can compare the effects of market volatilities on Zhongjing Food and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Guilin Seamild.
Diversification Opportunities for Zhongjing Food and Guilin Seamild
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongjing and Guilin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Guilin Seamild go up and down completely randomly.
Pair Corralation between Zhongjing Food and Guilin Seamild
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 0.63 times more return on investment than Guilin Seamild. However, Zhongjing Food Co is 1.58 times less risky than Guilin Seamild. It trades about 0.06 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about -0.03 per unit of risk. If you would invest 2,968 in Zhongjing Food Co on November 4, 2024 and sell it today you would earn a total of 41.00 from holding Zhongjing Food Co or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Guilin Seamild Foods
Performance |
| Timeline |
| Zhongjing Food |
| Guilin Seamild Foods |
Zhongjing Food and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Guilin Seamild
The main advantage of trading using opposite Zhongjing Food and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Zhongjing Food vs. Maxvision Technology Corp | Zhongjing Food vs. Strait Innovation Internet | Zhongjing Food vs. ROPEOK Technology Group | Zhongjing Food vs. Tianjin Hi Tech Development |
| Guilin Seamild vs. Sportsoul Co Ltd | Guilin Seamild vs. Ningbo Ligong Online | Guilin Seamild vs. Hubeiyichang Transportation Group | Guilin Seamild vs. Lander Sports Development |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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