Correlation Between Shenzhen Hifuture and Zhongyin Babi
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Zhongyin Babi Food, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Zhongyin Babi.
Diversification Opportunities for Shenzhen Hifuture and Zhongyin Babi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Zhongyin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Zhongyin Babi
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.72 times less return on investment than Zhongyin Babi. In addition to that, Shenzhen Hifuture is 1.08 times more volatile than Zhongyin Babi Food. It trades about 0.18 of its total potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.33 per unit of volatility. If you would invest 1,262 in Zhongyin Babi Food on September 14, 2024 and sell it today you would earn a total of 867.00 from holding Zhongyin Babi Food or generate 68.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.55% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Zhongyin Babi Food
Performance |
Timeline |
Shenzhen Hifuture |
Zhongyin Babi Food |
Shenzhen Hifuture and Zhongyin Babi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Zhongyin Babi
The main advantage of trading using opposite Shenzhen Hifuture and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
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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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