Correlation Between Zhongyin Babi and Shanghai Material
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By analyzing existing cross correlation between Zhongyin Babi Food and Shanghai Material Trading, you can compare the effects of market volatilities on Zhongyin Babi and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Shanghai Material.
Diversification Opportunities for Zhongyin Babi and Shanghai Material
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongyin and Shanghai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Shanghai Material go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Shanghai Material
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.57 times more return on investment than Shanghai Material. However, Zhongyin Babi is 1.57 times more volatile than Shanghai Material Trading. It trades about 0.09 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.23 per unit of risk. If you would invest 1,749 in Zhongyin Babi Food on October 30, 2024 and sell it today you would earn a total of 78.00 from holding Zhongyin Babi Food or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Shanghai Material Trading
Performance |
| Timeline |
| Zhongyin Babi Food |
| Shanghai Material Trading |
Zhongyin Babi and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Shanghai Material
The main advantage of trading using opposite Zhongyin Babi and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Zhongyin Babi vs. Kweichow Moutai Co | Zhongyin Babi vs. Contemporary Amperex Technology | Zhongyin Babi vs. G bits Network Technology | Zhongyin Babi vs. Beijing Roborock Technology |
| Shanghai Material vs. Jinling Hotel Corp | Shanghai Material vs. Ningxia Younglight Chemicals | Shanghai Material vs. Shandong Polymer Biochemicals | Shanghai Material vs. Guocheng Mining Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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