Correlation Between Shanghai Ziyan and Zhongyin Babi
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Zhongyin Babi Food, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Zhongyin Babi.
Diversification Opportunities for Shanghai Ziyan and Zhongyin Babi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Zhongyin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods 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 Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Zhongyin Babi
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 1.17 times more return on investment than Zhongyin Babi. However, Shanghai Ziyan is 1.17 times more volatile than Zhongyin Babi Food. It trades about 0.23 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.04 per unit of risk. If you would invest 1,696 in Shanghai Ziyan Foods on August 28, 2024 and sell it today you would earn a total of 207.00 from holding Shanghai Ziyan Foods or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Zhongyin Babi Food
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Zhongyin Babi Food |
Shanghai Ziyan and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Zhongyin Babi
The main advantage of trading using opposite Shanghai Ziyan and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Industrial and Commercial | Shanghai Ziyan vs. Agricultural Bank of | Shanghai Ziyan vs. China Construction Bank | Shanghai Ziyan vs. Bank of China |
| Zhongyin Babi vs. China Petroleum Chemical | Zhongyin Babi vs. PetroChina Co Ltd | Zhongyin Babi vs. China State Construction | Zhongyin Babi vs. China Railway 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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