Correlation Between Zhongjing Food and Industrial Bank
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By analyzing existing cross correlation between Zhongjing Food Co and Industrial Bank Co, you can compare the effects of market volatilities on Zhongjing Food and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Industrial Bank.
Diversification Opportunities for Zhongjing Food and Industrial Bank
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongjing and Industrial is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Industrial Bank go up and down completely randomly.
Pair Corralation between Zhongjing Food and Industrial Bank
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 2.72 times more return on investment than Industrial Bank. However, Zhongjing Food is 2.72 times more volatile than Industrial Bank Co. It trades about 0.02 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.03 per unit of risk. If you would invest 2,986 in Zhongjing Food Co on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Zhongjing Food Co or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Industrial Bank Co
Performance |
| Timeline |
| Zhongjing Food |
| Industrial Bank |
Zhongjing Food and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Industrial Bank
The main advantage of trading using opposite Zhongjing Food and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
| Industrial Bank vs. Bank of China | Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. PetroChina Co Ltd | Industrial Bank vs. Bank of Communications |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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