Correlation Between Zhongyin Babi and Zhejiang Qianjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongyin Babi Food and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Zhongyin Babi and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Zhejiang Qianjiang.
Diversification Opportunities for Zhongyin Babi and Zhejiang Qianjiang
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongyin and Zhejiang is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Zhejiang Qianjiang
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to generate 0.92 times more return on investment than Zhejiang Qianjiang. However, Zhongyin Babi Food is 1.09 times less risky than Zhejiang Qianjiang. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.06 per unit of risk. If you would invest 1,481 in Zhongyin Babi Food on September 26, 2024 and sell it today you would earn a total of 310.00 from holding Zhongyin Babi Food or generate 20.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongyin Babi Food vs. Zhejiang Qianjiang Motorcycle
Performance |
Timeline |
Zhongyin Babi Food |
Zhejiang Qianjiang |
Zhongyin Babi and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongyin Babi and Zhejiang Qianjiang
The main advantage of trading using opposite Zhongyin Babi and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.Zhongyin Babi vs. Tianjin Pengling Rubber | Zhongyin Babi vs. Super Dragon Engineering Plastics | Zhongyin Babi vs. Jinsanjiang Silicon Material | Zhongyin Babi vs. Jiangsu Yanghe Brewery |
Zhejiang Qianjiang vs. Guilin Seamild Foods | Zhejiang Qianjiang vs. Zhongyin Babi Food | Zhejiang Qianjiang vs. Wasu Media Holding | Zhejiang Qianjiang vs. Eastroc Beverage Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |