Correlation Between Zhongyin Babi and Chongqing Brewery
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By analyzing existing cross correlation between Zhongyin Babi Food and Chongqing Brewery Co, you can compare the effects of market volatilities on Zhongyin Babi and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Chongqing Brewery.
Diversification Opportunities for Zhongyin Babi and Chongqing Brewery
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongyin and Chongqing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Chongqing Brewery
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.91 times more return on investment than Chongqing Brewery. However, Zhongyin Babi is 1.91 times more volatile than Chongqing Brewery Co. It trades about 0.15 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.14 per unit of risk. If you would invest 1,610 in Zhongyin Babi Food on September 26, 2024 and sell it today you would earn a total of 181.00 from holding Zhongyin Babi Food or generate 11.24% 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. Chongqing Brewery Co
Performance |
| Timeline |
| Zhongyin Babi Food |
| Chongqing Brewery |
Zhongyin Babi and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Chongqing Brewery
The main advantage of trading using opposite Zhongyin Babi and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Zhongyin Babi vs. Tianjin Pengling Rubber | Zhongyin Babi vs. Super Dragon Engineering Plastics | Zhongyin Babi vs. Jinsanjiang Silicon Material | Zhongyin Babi vs. Jiangsu Yanghe Brewery |
| Chongqing Brewery vs. BYD Co Ltd | Chongqing Brewery vs. China Mobile Limited | Chongqing Brewery vs. Agricultural Bank of | Chongqing Brewery vs. Industrial and Commercial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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