Correlation Between Zhongyin Babi and Shenzhen Inovance
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By analyzing existing cross correlation between Zhongyin Babi Food and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Zhongyin Babi and Shenzhen Inovance 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 Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Shenzhen Inovance.
Diversification Opportunities for Zhongyin Babi and Shenzhen Inovance
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongyin and Shenzhen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Shenzhen Inovance
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 2.41 times more return on investment than Shenzhen Inovance. However, Zhongyin Babi is 2.41 times more volatile than Shenzhen Inovance Tech. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.06 per unit of risk. If you would invest 1,639 in Zhongyin Babi Food on September 28, 2024 and sell it today you would earn a total of 130.00 from holding Zhongyin Babi Food or generate 7.93% 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. Shenzhen Inovance Tech
Performance |
| Timeline |
| Zhongyin Babi Food |
| Shenzhen Inovance Tech |
Zhongyin Babi and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Shenzhen Inovance
The main advantage of trading using opposite Zhongyin Babi and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Shenzhen Inovance 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 Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Zhongyin Babi vs. Ming Yang Smart | Zhongyin Babi vs. 159681 | Zhongyin Babi vs. 159005 | Zhongyin Babi vs. Loctek Ergonomic Technology |
| Shenzhen Inovance vs. Innovative Medical Management | Shenzhen Inovance vs. Gifore Agricultural Machinery | Shenzhen Inovance vs. JCHX Mining Management | Shenzhen Inovance vs. Long Yuan Construction |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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