Correlation Between Zhongyin Babi and Zoy Home
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By analyzing existing cross correlation between Zhongyin Babi Food and Zoy Home Furnishing, you can compare the effects of market volatilities on Zhongyin Babi and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Zoy Home.
Diversification Opportunities for Zhongyin Babi and Zoy Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongyin and Zoy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Zoy Home go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Zoy Home
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 0.61 times more return on investment than Zoy Home. However, Zhongyin Babi Food is 1.64 times less risky than Zoy Home. It trades about -0.01 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about -0.03 per unit of risk. If you would invest 1,885 in Zhongyin Babi Food on October 14, 2024 and sell it today you would lose (267.00) from holding Zhongyin Babi Food or give up 14.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Zoy Home Furnishing
Performance |
| Timeline |
| Zhongyin Babi Food |
| Zoy Home Furnishing |
Zhongyin Babi and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Zoy Home
The main advantage of trading using opposite Zhongyin Babi and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Zhongyin Babi vs. China World Trade | Zhongyin Babi vs. Yingde Greatchem Chemicals | Zhongyin Babi vs. Do Fluoride Chemicals Co | Zhongyin Babi vs. Huatian Hotel Group |
| Zoy Home vs. Telling Telecommunication Holding | Zoy Home vs. Eyebright Medical Technology | Zoy Home vs. Nanjing Putian Telecommunications | Zoy Home vs. 360 Security Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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