Correlation Between Duzhe Publishing and Zhongyin Babi
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By analyzing existing cross correlation between Duzhe Publishing Media and Zhongyin Babi Food, you can compare the effects of market volatilities on Duzhe Publishing 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 Duzhe Publishing with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Zhongyin Babi.
Diversification Opportunities for Duzhe Publishing and Zhongyin Babi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duzhe and Zhongyin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media 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 Duzhe Publishing 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 Duzhe Publishing Media 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 Duzhe Publishing i.e., Duzhe Publishing and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Zhongyin Babi
Assuming the 90 days trading horizon Duzhe Publishing is expected to generate 1.62 times less return on investment than Zhongyin Babi. In addition to that, Duzhe Publishing is 1.21 times more volatile than Zhongyin Babi Food. It trades about 0.03 of its total potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.06 per unit of volatility. If you would invest 1,557 in Zhongyin Babi Food on October 24, 2024 and sell it today you would earn a total of 132.00 from holding Zhongyin Babi Food or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Zhongyin Babi Food
Performance |
| Timeline |
| Duzhe Publishing Media |
| Zhongyin Babi Food |
Duzhe Publishing and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Zhongyin Babi
The main advantage of trading using opposite Duzhe Publishing and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing 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.| Duzhe Publishing vs. Shandong Publishing Media | Duzhe Publishing vs. Harvest Fund Management | Duzhe Publishing vs. Cicc Fund Management | Duzhe Publishing vs. Nanjing Putian Telecommunications |
| Zhongyin Babi vs. Zhejiang Construction Investment | Zhongyin Babi vs. Duzhe Publishing Media | Zhongyin Babi vs. Hunan Investment Group | Zhongyin Babi vs. Tieling Newcity Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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