Correlation Between Zhongyin Babi and Great Sun
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By analyzing existing cross correlation between Zhongyin Babi Food and Great Sun Foods Co, you can compare the effects of market volatilities on Zhongyin Babi and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Great Sun.
Diversification Opportunities for Zhongyin Babi and Great Sun
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongyin and Great is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Great Sun go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Great Sun
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to under-perform the Great Sun. But the stock apears to be less risky and, when comparing its historical volatility, Zhongyin Babi Food is 1.63 times less risky than Great Sun. The stock trades about -0.52 of its potential returns per unit of risk. The Great Sun Foods Co is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 532.00 in Great Sun Foods Co on October 14, 2024 and sell it today you would lose (95.00) from holding Great Sun Foods Co or give up 17.86% 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. Great Sun Foods Co
Performance |
| Timeline |
| Zhongyin Babi Food |
| Great Sun Foods |
Zhongyin Babi and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Great Sun
The main advantage of trading using opposite Zhongyin Babi and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Zhongyin Babi vs. China Reform Health | Zhongyin Babi vs. Shanghai Rongtai Health | Zhongyin Babi vs. Anhui Huaren Health | Zhongyin Babi vs. Sanbo Hospital Management |
| Great Sun vs. Jiangsu Financial Leasing | Great Sun vs. Unisplendour Corp | Great Sun vs. Zoje Resources Investment | Great Sun vs. GRG Banking Equipment |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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