Correlation Between XinJiang GuoTong and Yindu Kitchen
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Yindu Kitchen Equipment, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Yindu Kitchen.
Diversification Opportunities for XinJiang GuoTong and Yindu Kitchen
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XinJiang and Yindu is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline 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 XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Yindu Kitchen go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Yindu Kitchen
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Yindu Kitchen. In addition to that, XinJiang GuoTong is 1.4 times more volatile than Yindu Kitchen Equipment. It trades about -0.01 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.04 per unit of volatility. If you would invest 1,743 in Yindu Kitchen Equipment on August 25, 2024 and sell it today you would earn a total of 644.00 from holding Yindu Kitchen Equipment or generate 36.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Yindu Kitchen Equipment |
XinJiang GuoTong and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Yindu Kitchen
The main advantage of trading using opposite XinJiang GuoTong and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Yindu Kitchen Equipment | XinJiang GuoTong vs. GRINM Semiconductor Materials | XinJiang GuoTong vs. StarPower Semiconductor | XinJiang GuoTong vs. Shandong Polymer Biochemicals |
| Yindu Kitchen vs. Biwin Storage Technology | Yindu Kitchen vs. PetroChina Co Ltd | Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. China Construction Bank |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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