Correlation Between Zhongyin Babi and Poly Real
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By analyzing existing cross correlation between Zhongyin Babi Food and Poly Real Estate, you can compare the effects of market volatilities on Zhongyin Babi and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Poly Real.
Diversification Opportunities for Zhongyin Babi and Poly Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongyin and Poly is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Zhongyin Babi i.e., Zhongyin Babi and Poly Real go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Poly Real
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to under-perform the Poly Real. But the stock apears to be less risky and, when comparing its historical volatility, Zhongyin Babi Food is 1.07 times less risky than Poly Real. The stock trades about -0.04 of its potential returns per unit of risk. The Poly Real Estate is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,545 in Poly Real Estate on September 6, 2024 and sell it today you would lose (534.00) from holding Poly Real Estate or give up 34.56% 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. Poly Real Estate
Performance |
Timeline |
Zhongyin Babi Food |
Poly Real Estate |
Zhongyin Babi and Poly Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongyin Babi and Poly Real
The main advantage of trading using opposite Zhongyin Babi and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.Zhongyin Babi vs. Poly Real Estate | Zhongyin Babi vs. China Vanke Co | Zhongyin Babi vs. China Merchants Shekou | Zhongyin Babi vs. Huafa Industrial Co |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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