Correlation Between Tibet Huayu and Zhongyin Babi
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By analyzing existing cross correlation between Tibet Huayu Mining and Zhongyin Babi Food, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Zhongyin Babi.
Diversification Opportunities for Tibet Huayu and Zhongyin Babi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Zhongyin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining 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 Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Tibet Huayu and Zhongyin Babi
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.02 times more return on investment than Zhongyin Babi. However, Tibet Huayu is 1.02 times more volatile than Zhongyin Babi Food. It trades about -0.1 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.19 per unit of risk. If you would invest 1,330 in Tibet Huayu Mining on October 25, 2024 and sell it today you would lose (59.00) from holding Tibet Huayu Mining or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Zhongyin Babi Food
Performance |
| Timeline |
| Tibet Huayu Mining |
| Zhongyin Babi Food |
Tibet Huayu and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Zhongyin Babi
The main advantage of trading using opposite Tibet Huayu and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. Guilin Seamild Foods | Tibet Huayu vs. Youyou Foods Co | Tibet Huayu vs. Xiwang Foodstuffs Co | Tibet Huayu vs. Zhongjing Food Co |
| Zhongyin Babi vs. Agricultural Bank of | Zhongyin Babi vs. Postal Savings Bank | Zhongyin Babi vs. Bank of Communications | Zhongyin Babi vs. China Merchants Bank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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