Correlation Between Zhongyin Babi and Yuan Longping
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By analyzing existing cross correlation between Zhongyin Babi Food and Yuan Longping High tech, you can compare the effects of market volatilities on Zhongyin Babi and Yuan Longping 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 Zhongyin Babi with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Yuan Longping.
Diversification Opportunities for Zhongyin Babi and Yuan Longping
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongyin and Yuan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and Zhongyin Babi 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 Zhongyin Babi Food are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Yuan Longping go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Yuan Longping
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 2.05 times more return on investment than Yuan Longping. However, Zhongyin Babi is 2.05 times more volatile than Yuan Longping High tech. It trades about 0.43 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 1,644 in Zhongyin Babi Food on September 15, 2024 and sell it today you would earn a total of 485.00 from holding Zhongyin Babi Food or generate 29.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Yuan Longping High tech
Performance |
| Timeline |
| Zhongyin Babi Food |
| Yuan Longping High |
Zhongyin Babi and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Yuan Longping
The main advantage of trading using opposite Zhongyin Babi and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Zhongyin Babi vs. Nanjing Putian Telecommunications | Zhongyin Babi vs. Tianjin Realty Development | Zhongyin Babi vs. Kangyue Technology Co | Zhongyin Babi vs. Shenzhen Hifuture Electric |
| Yuan Longping vs. Eastern Communications Co | Yuan Longping vs. Sichuan Teway Food | Yuan Longping vs. Zhongyin Babi Food | Yuan Longping vs. Namchow Food 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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