Correlation Between Shenzhen Centralcon and Yindu Kitchen
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Shenzhen Centralcon and Yindu Kitchen 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 Centralcon with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Yindu Kitchen.
Diversification Opportunities for Shenzhen Centralcon and Yindu Kitchen
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Yindu is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment and Shenzhen Centralcon 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 Centralcon Investment are associated (or correlated) with Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Yindu Kitchen
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Yindu Kitchen. In addition to that, Shenzhen Centralcon is 1.96 times more volatile than Yindu Kitchen Equipment. It trades about -0.33 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.01 per unit of volatility. If you would invest 2,430 in Yindu Kitchen Equipment on October 11, 2024 and sell it today you would lose (1.00) from holding Yindu Kitchen Equipment or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Shenzhen Centralcon |
| Yindu Kitchen Equipment |
Shenzhen Centralcon and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Yindu Kitchen
The main advantage of trading using opposite Shenzhen Centralcon and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| Shenzhen Centralcon vs. Easyhome New Retail | Shenzhen Centralcon vs. Guangzhou Haozhi Industrial | Shenzhen Centralcon vs. Beijing Kingsoft Office | Shenzhen Centralcon vs. Rising Nonferrous Metals |
| Yindu Kitchen vs. CITIC Guoan Information | Yindu Kitchen vs. Digital China Information | Yindu Kitchen vs. Sublime China Information | Yindu Kitchen vs. Shenzhen Centralcon Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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