Correlation Between Zhongjing Food and Chengdu B-ray
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By analyzing existing cross correlation between Zhongjing Food Co and Chengdu B ray Media, you can compare the effects of market volatilities on Zhongjing Food and Chengdu B-ray 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 Chengdu B-ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Chengdu B-ray.
Diversification Opportunities for Zhongjing Food and Chengdu B-ray
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongjing and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B-ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Chengdu B-ray go up and down completely randomly.
Pair Corralation between Zhongjing Food and Chengdu B-ray
Assuming the 90 days trading horizon Zhongjing Food Co is expected to under-perform the Chengdu B-ray. In addition to that, Zhongjing Food is 1.26 times more volatile than Chengdu B ray Media. It trades about -0.13 of its total potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.03 per unit of volatility. If you would invest 472.00 in Chengdu B ray Media on December 30, 2024 and sell it today you would lose (8.00) from holding Chengdu B ray Media or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Chengdu B ray Media
Performance |
| Timeline |
| Zhongjing Food |
| Chengdu B ray |
Zhongjing Food and Chengdu B-ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Chengdu B-ray
The main advantage of trading using opposite Zhongjing Food and Chengdu B-ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Chengdu B-ray 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 Chengdu B-ray will offset losses from the drop in Chengdu B-ray's long position.| Zhongjing Food vs. Tongling Nonferrous Metals | Zhongjing Food vs. Jiaozuo Wanfang Aluminum | Zhongjing Food vs. Hangzhou Minsheng Healthcare | Zhongjing Food vs. Guangdong Jingyi Metal |
| Chengdu B-ray vs. Suzhou Douson Drilling | Chengdu B-ray vs. Zhejiang Yinlun Machinery | Chengdu B-ray vs. Hangzhou Zhongya Machinery | Chengdu B-ray vs. Zhongyin Babi Food |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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