Correlation Between Zhongyin Babi and Sunny Loan
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By analyzing existing cross correlation between Zhongyin Babi Food and Sunny Loan Top, you can compare the effects of market volatilities on Zhongyin Babi and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Sunny Loan.
Diversification Opportunities for Zhongyin Babi and Sunny Loan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongyin and Sunny is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Sunny Loan go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Sunny Loan
Assuming the 90 days trading horizon Zhongyin Babi is expected to generate 10.69 times less return on investment than Sunny Loan. But when comparing it to its historical volatility, Zhongyin Babi Food is 1.73 times less risky than Sunny Loan. It trades about 0.02 of its potential returns per unit of risk. Sunny Loan Top is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Sunny Loan Top on August 29, 2024 and sell it today you would earn a total of 384.00 from holding Sunny Loan Top or generate 61.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Sunny Loan Top
Performance |
| Timeline |
| Zhongyin Babi Food |
| Sunny Loan Top |
Zhongyin Babi and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Sunny Loan
The main advantage of trading using opposite Zhongyin Babi and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Zhongyin Babi vs. China Petroleum Chemical | Zhongyin Babi vs. PetroChina Co Ltd | Zhongyin Babi vs. China State Construction | Zhongyin Babi vs. China Railway Group |
| Sunny Loan vs. Guangdong Qunxing Toys | Sunny Loan vs. Anji Foodstuff Co | Sunny Loan vs. Youyou Foods Co | Sunny Loan vs. Zhongyin Babi Food |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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