Correlation Between Grandblue Environment and Zhongyin Babi
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By analyzing existing cross correlation between Grandblue Environment Co and Zhongyin Babi Food, you can compare the effects of market volatilities on Grandblue Environment 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 Grandblue Environment with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grandblue Environment and Zhongyin Babi.
Diversification Opportunities for Grandblue Environment and Zhongyin Babi
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grandblue and Zhongyin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grandblue Environment Co 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 Grandblue Environment 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 Grandblue Environment Co 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 Grandblue Environment i.e., Grandblue Environment and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Grandblue Environment and Zhongyin Babi
Assuming the 90 days trading horizon Grandblue Environment Co is expected to generate 0.64 times more return on investment than Zhongyin Babi. However, Grandblue Environment Co is 1.57 times less risky than Zhongyin Babi. It trades about 0.08 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.02 per unit of risk. If you would invest 1,776 in Grandblue Environment Co on October 14, 2024 and sell it today you would earn a total of 418.00 from holding Grandblue Environment Co or generate 23.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grandblue Environment Co vs. Zhongyin Babi Food
Performance |
| Timeline |
| Grandblue Environment |
| Zhongyin Babi Food |
Grandblue Environment and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grandblue Environment and Zhongyin Babi
The main advantage of trading using opposite Grandblue Environment and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grandblue Environment 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.| Grandblue Environment vs. PKU HealthCare Corp | Grandblue Environment vs. Humanwell Healthcare Group | Grandblue Environment vs. China Asset Management | Grandblue Environment vs. Everjoy Health Group |
| Zhongyin Babi vs. China Reform Health | Zhongyin Babi vs. Shanghai Rongtai Health | Zhongyin Babi vs. Anhui Huaren Health | Zhongyin Babi vs. Sanbo Hospital Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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