Correlation Between Chengdu B-ray and Zhongjing Food
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By analyzing existing cross correlation between Chengdu B ray Media and Zhongjing Food Co, you can compare the effects of market volatilities on Chengdu B-ray and Zhongjing Food 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 Chengdu B-ray with a short position of Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Zhongjing Food.
Diversification Opportunities for Chengdu B-ray and Zhongjing Food
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Zhongjing is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food and Chengdu B-ray 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 Chengdu B ray Media are associated (or correlated) with Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of Chengdu B-ray i.e., Chengdu B-ray and Zhongjing Food go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Zhongjing Food
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Zhongjing Food. In addition to that, Chengdu B-ray is 1.68 times more volatile than Zhongjing Food Co. It trades about -0.06 of its total potential returns per unit of risk. Zhongjing Food Co is currently generating about -0.09 per unit of volatility. If you would invest 3,104 in Zhongjing Food Co on November 3, 2024 and sell it today you would lose (95.00) from holding Zhongjing Food Co or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Zhongjing Food Co
Performance |
| Timeline |
| Chengdu B ray |
| Zhongjing Food |
Chengdu B-ray and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Zhongjing Food
The main advantage of trading using opposite Chengdu B-ray and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| Chengdu B-ray vs. Guangdong Sunwill Precising | Chengdu B-ray vs. Shengda Mining Co | Chengdu B-ray vs. Jilin OLED Material | Chengdu B-ray vs. Malion New Materials |
| Zhongjing Food vs. Duzhe Publishing Media | Zhongjing Food vs. Shanghai Action Education | Zhongjing Food vs. COL Digital Publishing | Zhongjing Food vs. Jiangsu Phoenix Publishing |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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