Correlation Between Zhongyin Babi and Shenzhen Coship
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By analyzing existing cross correlation between Zhongyin Babi Food and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Zhongyin Babi and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Shenzhen Coship.
Diversification Opportunities for Zhongyin Babi and Shenzhen Coship
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongyin and Shenzhen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Shenzhen Coship
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.02 times more return on investment than Shenzhen Coship. However, Zhongyin Babi is 1.02 times more volatile than Shenzhen Coship Electronics. It trades about 0.22 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.23 per unit of risk. If you would invest 1,650 in Zhongyin Babi Food on November 6, 2024 and sell it today you would earn a total of 177.00 from holding Zhongyin Babi Food or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Zhongyin Babi Food |
| Shenzhen Coship Elec |
Zhongyin Babi and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Shenzhen Coship
The main advantage of trading using opposite Zhongyin Babi and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's long position.| Zhongyin Babi vs. Allgens Medical Technology | Zhongyin Babi vs. Double Medical Technology | Zhongyin Babi vs. Chison Medical Technologies | Zhongyin Babi vs. Guangdong Transtek Medical |
| Shenzhen Coship vs. CITIC Metal Co | Shenzhen Coship vs. COL Digital Publishing | Shenzhen Coship vs. Anhui Transport Consulting | Shenzhen Coship vs. Chinese Universe 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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