Correlation Between Western Metal and Yindu Kitchen
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By analyzing existing cross correlation between Western Metal Materials and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Yindu Kitchen.
Diversification Opportunities for Western Metal and Yindu Kitchen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Yindu is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Western Metal and Yindu Kitchen
Assuming the 90 days trading horizon Western Metal Materials is expected to under-perform the Yindu Kitchen. In addition to that, Western Metal is 1.49 times more volatile than Yindu Kitchen Equipment. It trades about -0.06 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.19 per unit of volatility. If you would invest 2,353 in Yindu Kitchen Equipment on October 30, 2024 and sell it today you would earn a total of 212.00 from holding Yindu Kitchen Equipment or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Western Metal Materials |
| Yindu Kitchen Equipment |
Western Metal and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Yindu Kitchen
The main advantage of trading using opposite Western Metal and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
| Yindu Kitchen vs. Shanghai Shuixing Home | Yindu Kitchen vs. Soyea Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Jiugui Liquor Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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