Correlation Between Zhongyin Babi and China Construction
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By analyzing existing cross correlation between Zhongyin Babi Food and China Construction Bank, you can compare the effects of market volatilities on Zhongyin Babi and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and China Construction.
Diversification Opportunities for Zhongyin Babi and China Construction
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongyin and China is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and China Construction go up and down completely randomly.
Pair Corralation between Zhongyin Babi and China Construction
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to under-perform the China Construction. In addition to that, Zhongyin Babi is 2.43 times more volatile than China Construction Bank. It trades about -0.02 of its total potential returns per unit of risk. China Construction Bank is currently generating about -0.02 per unit of volatility. If you would invest 801.00 in China Construction Bank on August 29, 2024 and sell it today you would lose (3.00) from holding China Construction Bank or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. China Construction Bank
Performance |
| Timeline |
| Zhongyin Babi Food |
| China Construction Bank |
Zhongyin Babi and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and China Construction
The main advantage of trading using opposite Zhongyin Babi and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction'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 |
| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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