Correlation Between Zhongyin Babi and Nanjing Putian
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By analyzing existing cross correlation between Zhongyin Babi Food and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Zhongyin Babi and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Nanjing Putian.
Diversification Opportunities for Zhongyin Babi and Nanjing Putian
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongyin and Nanjing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Nanjing Putian go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Nanjing Putian
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Zhongyin Babi Food is 1.39 times less risky than Nanjing Putian. The stock trades about -0.03 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Nanjing Putian Telecommunications on November 30, 2024 and sell it today you would earn a total of 4.00 from holding Nanjing Putian Telecommunications or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Zhongyin Babi Food |
| Nanjing Putian Telec |
Zhongyin Babi and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Nanjing Putian
The main advantage of trading using opposite Zhongyin Babi and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Zhongyin Babi vs. HaiXin Foods Co | Zhongyin Babi vs. Huawen Media Investment | Zhongyin Babi vs. Zhejiang Construction Investment | Zhongyin Babi vs. Chengdu Xingrong Investment |
| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Cofoe Medical Technology | Nanjing Putian vs. Beijing Balance Medical | Nanjing Putian vs. Kontour Medical Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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