Correlation Between Zhongyin Babi and Jiangsu Yanghe
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By analyzing existing cross correlation between Zhongyin Babi Food and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Zhongyin Babi and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Jiangsu Yanghe.
Diversification Opportunities for Zhongyin Babi and Jiangsu Yanghe
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongyin and Jiangsu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Jiangsu Yanghe
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.19 times more return on investment than Jiangsu Yanghe. However, Zhongyin Babi is 1.19 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.03 per unit of risk. If you would invest 1,544 in Zhongyin Babi Food on October 14, 2024 and sell it today you would earn a total of 74.00 from holding Zhongyin Babi Food or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Zhongyin Babi Food |
| Jiangsu Yanghe Brewery |
Zhongyin Babi and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Jiangsu Yanghe
The main advantage of trading using opposite Zhongyin Babi and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Zhongyin Babi vs. China Reform Health | Zhongyin Babi vs. Shanghai Rongtai Health | Zhongyin Babi vs. Anhui Huaren Health | Zhongyin Babi vs. Sanbo Hospital Management |
| Jiangsu Yanghe vs. Jiangsu Xinri E Vehicle | Jiangsu Yanghe vs. Shenyang Chemical Industry | Jiangsu Yanghe vs. Zhejiang Qianjiang Motorcycle | Jiangsu Yanghe vs. Changchun Engley Automobile |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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