Correlation Between Zhongyin Babi and Zhejiang Yinlun
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By analyzing existing cross correlation between Zhongyin Babi Food and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Zhongyin Babi and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Zhejiang Yinlun.
Diversification Opportunities for Zhongyin Babi and Zhejiang Yinlun
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongyin and Zhejiang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Zhejiang Yinlun
Assuming the 90 days trading horizon Zhongyin Babi is expected to generate 1.66 times less return on investment than Zhejiang Yinlun. In addition to that, Zhongyin Babi is 1.43 times more volatile than Zhejiang Yinlun Machinery. It trades about 0.06 of its total potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.14 per unit of volatility. If you would invest 1,788 in Zhejiang Yinlun Machinery on October 30, 2024 and sell it today you would earn a total of 228.00 from holding Zhejiang Yinlun Machinery or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Zhongyin Babi Food |
| Zhejiang Yinlun Machinery |
Zhongyin Babi and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Zhejiang Yinlun
The main advantage of trading using opposite Zhongyin Babi and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Zhongyin Babi vs. Kweichow Moutai Co | Zhongyin Babi vs. Contemporary Amperex Technology | Zhongyin Babi vs. G bits Network Technology | Zhongyin Babi vs. Beijing Roborock Technology |
| Zhejiang Yinlun vs. Dymatic Chemicals | Zhejiang Yinlun vs. Lianhe Chemical Technology | Zhejiang Yinlun vs. Daoming OpticsChemical Co | Zhejiang Yinlun vs. Queclink Wireless Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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