Correlation Between Zhongyin Babi and Aba Chemicals
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By analyzing existing cross correlation between Zhongyin Babi Food and Aba Chemicals Corp, you can compare the effects of market volatilities on Zhongyin Babi and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Aba Chemicals.
Diversification Opportunities for Zhongyin Babi and Aba Chemicals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongyin and Aba is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Aba Chemicals go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Aba Chemicals
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.13 times more return on investment than Aba Chemicals. However, Zhongyin Babi is 1.13 times more volatile than Aba Chemicals Corp. It trades about 0.34 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.07 per unit of risk. If you would invest 1,682 in Zhongyin Babi Food on September 14, 2024 and sell it today you would earn a total of 389.00 from holding Zhongyin Babi Food or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Aba Chemicals Corp
Performance |
| Timeline |
| Zhongyin Babi Food |
| Aba Chemicals Corp |
Zhongyin Babi and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Aba Chemicals
The main advantage of trading using opposite Zhongyin Babi and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Zhongyin Babi vs. Nanjing Putian Telecommunications | Zhongyin Babi vs. Tianjin Realty Development | Zhongyin Babi vs. Kangyue Technology Co | Zhongyin Babi vs. Shenzhen Hifuture Electric |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Shandong Gold Mining |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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