Correlation Between Zhongjing Food and Sinocelltech Group
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By analyzing existing cross correlation between Zhongjing Food Co and Sinocelltech Group, you can compare the effects of market volatilities on Zhongjing Food and Sinocelltech Group 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 Sinocelltech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Sinocelltech Group.
Diversification Opportunities for Zhongjing Food and Sinocelltech Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongjing and Sinocelltech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Sinocelltech Group go up and down completely randomly.
Pair Corralation between Zhongjing Food and Sinocelltech Group
Assuming the 90 days trading horizon Zhongjing Food Co is expected to under-perform the Sinocelltech Group. But the stock apears to be less risky and, when comparing its historical volatility, Zhongjing Food Co is 1.07 times less risky than Sinocelltech Group. The stock trades about -0.09 of its potential returns per unit of risk. The Sinocelltech Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,528 in Sinocelltech Group on November 3, 2024 and sell it today you would earn a total of 56.00 from holding Sinocelltech Group or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Sinocelltech Group
Performance |
| Timeline |
| Zhongjing Food |
| Sinocelltech Group |
Zhongjing Food and Sinocelltech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Sinocelltech Group
The main advantage of trading using opposite Zhongjing Food and Sinocelltech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Sinocelltech Group 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 Sinocelltech Group will offset losses from the drop in Sinocelltech Group'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 |
| Sinocelltech Group vs. Eyebright Medical Technology | Sinocelltech Group vs. APT Medical | Sinocelltech Group vs. Nanjing Putian Telecommunications | Sinocelltech Group vs. Dingli Communications Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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