Correlation Between JuneYao Dairy and Zhongyin Babi
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By analyzing existing cross correlation between JuneYao Dairy Co and Zhongyin Babi Food, you can compare the effects of market volatilities on JuneYao Dairy and Zhongyin Babi 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 JuneYao Dairy with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and Zhongyin Babi.
Diversification Opportunities for JuneYao Dairy and Zhongyin Babi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JuneYao and Zhongyin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy Co and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food and JuneYao Dairy 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 JuneYao Dairy Co are associated (or correlated) with Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of JuneYao Dairy i.e., JuneYao Dairy and Zhongyin Babi go up and down completely randomly.
Pair Corralation between JuneYao Dairy and Zhongyin Babi
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the Zhongyin Babi. In addition to that, JuneYao Dairy is 1.32 times more volatile than Zhongyin Babi Food. It trades about -0.45 of its total potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.52 per unit of volatility. If you would invest 2,129 in Zhongyin Babi Food on October 14, 2024 and sell it today you would lose (511.00) from holding Zhongyin Babi Food or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. Zhongyin Babi Food
Performance |
| Timeline |
| JuneYao Dairy |
| Zhongyin Babi Food |
JuneYao Dairy and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and Zhongyin Babi
The main advantage of trading using opposite JuneYao Dairy and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| JuneYao Dairy vs. Jiujiang Shanshui Technology | JuneYao Dairy vs. Hainan Mining Co | JuneYao Dairy vs. Eyebright Medical Technology | JuneYao Dairy vs. Uroica Mining Safety |
| Zhongyin Babi vs. China Reform Health | Zhongyin Babi vs. Shanghai Rongtai Health | Zhongyin Babi vs. Anhui Huaren Health | Zhongyin Babi vs. Sanbo Hospital 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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