Correlation Between Zhongjing Food and Xinya Electronic
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By analyzing existing cross correlation between Zhongjing Food Co and Xinya Electronic Co, you can compare the effects of market volatilities on Zhongjing Food and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Xinya Electronic.
Diversification Opportunities for Zhongjing Food and Xinya Electronic
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongjing and Xinya is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Xinya Electronic go up and down completely randomly.
Pair Corralation between Zhongjing Food and Xinya Electronic
Assuming the 90 days trading horizon Zhongjing Food Co is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Zhongjing Food Co is 3.27 times less risky than Xinya Electronic. The stock trades about -0.09 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,389 in Xinya Electronic Co on November 3, 2024 and sell it today you would earn a total of 406.00 from holding Xinya Electronic Co or generate 29.23% 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. Xinya Electronic Co
Performance |
| Timeline |
| Zhongjing Food |
| Xinya Electronic |
Zhongjing Food and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Xinya Electronic
The main advantage of trading using opposite Zhongjing Food and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 |
| Xinya Electronic vs. Kweichow Moutai Co | Xinya Electronic vs. Shenzhen Mindray Bio Medical | Xinya Electronic vs. Jiangsu Pacific Quartz | Xinya Electronic vs. G bits Network Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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