Correlation Between Zhongyin Babi and Beijing Wantai
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By analyzing existing cross correlation between Zhongyin Babi Food and Beijing Wantai Biological, you can compare the effects of market volatilities on Zhongyin Babi and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Beijing Wantai.
Diversification Opportunities for Zhongyin Babi and Beijing Wantai
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongyin and Beijing is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Beijing Wantai go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Beijing Wantai
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 2.33 times more return on investment than Beijing Wantai. However, Zhongyin Babi is 2.33 times more volatile than Beijing Wantai Biological. It trades about 0.11 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.04 per unit of risk. If you would invest 1,804 in Zhongyin Babi Food on January 25, 2025 and sell it today you would earn a total of 140.00 from holding Zhongyin Babi Food or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Beijing Wantai Biological
Performance |
| Timeline |
| Zhongyin Babi Food |
| Beijing Wantai Biological |
Zhongyin Babi and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Beijing Wantai
The main advantage of trading using opposite Zhongyin Babi and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Zhongyin Babi vs. Chahua Modern Housewares | Zhongyin Babi vs. Anhui Jinhe Industrial | Zhongyin Babi vs. Ye Chiu Metal | Zhongyin Babi vs. Sanbo Hospital Management |
| Beijing Wantai vs. Harvest Fund Management | Beijing Wantai vs. AVIC Fund Management | Beijing Wantai vs. Shenzhen Noposion Agrochemicals | Beijing Wantai vs. Zhengzhou Coal Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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