Correlation Between Super Dragon and Zhongyin Babi
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Zhongyin Babi Food, you can compare the effects of market volatilities on Super Dragon and Zhongyin Babi 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 Super Dragon with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Zhongyin Babi.
Diversification Opportunities for Super Dragon and Zhongyin Babi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Zhongyin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food and Super Dragon 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 Super Dragon Engineering Plastics are associated (or correlated) with Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Super Dragon i.e., Super Dragon and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Super Dragon and Zhongyin Babi
Assuming the 90 days trading horizon Super Dragon Engineering Plastics is expected to generate 1.22 times more return on investment than Zhongyin Babi. However, Super Dragon is 1.22 times more volatile than Zhongyin Babi Food. It trades about -0.33 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.52 per unit of risk. If you would invest 3,950 in Super Dragon Engineering Plastics on October 14, 2024 and sell it today you would lose (761.00) from holding Super Dragon Engineering Plastics or give up 19.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Zhongyin Babi Food
Performance |
| Timeline |
| Super Dragon Enginee |
| Zhongyin Babi Food |
Super Dragon and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Zhongyin Babi
The main advantage of trading using opposite Super Dragon and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Super Dragon vs. Lutian Machinery Co | Super Dragon vs. China Minmetals Rare | Super Dragon vs. Masterwork Machinery | Super Dragon vs. Dalian Thermal Power |
| Zhongyin Babi vs. China World Trade | Zhongyin Babi vs. Yingde Greatchem Chemicals | Zhongyin Babi vs. Do Fluoride Chemicals Co | Zhongyin Babi vs. Huatian Hotel Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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