Correlation Between Zhongyin Babi and Namchow Food
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By analyzing existing cross correlation between Zhongyin Babi Food and Namchow Food Group, you can compare the effects of market volatilities on Zhongyin Babi and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Namchow Food.
Diversification Opportunities for Zhongyin Babi and Namchow Food
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongyin and Namchow is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Namchow Food go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Namchow Food
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 1.0 times more return on investment than Namchow Food. However, Zhongyin Babi Food is 1.0 times less risky than Namchow Food. It trades about 0.06 of its potential returns per unit of risk. Namchow Food Group is currently generating about -0.04 per unit of risk. If you would invest 1,557 in Zhongyin Babi Food on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Zhongyin Babi Food or generate 2.5% 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. Namchow Food Group
Performance |
| Timeline |
| Zhongyin Babi Food |
| Namchow Food Group |
Zhongyin Babi and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongyin Babi and Namchow Food
The main advantage of trading using opposite Zhongyin Babi and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Zhongyin Babi vs. Aluminum Corp of | Zhongyin Babi vs. COL Digital Publishing | Zhongyin Babi vs. Shaanxi Meineng Clean | Zhongyin Babi vs. Gansu Huangtai Wine marketing |
| Namchow Food vs. Sanbo Hospital Management | Namchow Food vs. Hefei Metalforming Mach | Namchow Food vs. Guangdong Jingyi Metal | Namchow Food vs. CICC Fund Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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