Correlation Between Guangzhou Haige and Yindu Kitchen
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By analyzing existing cross correlation between Guangzhou Haige Communications and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Yindu Kitchen.
Diversification Opportunities for Guangzhou Haige and Yindu Kitchen
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Yindu is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Yindu Kitchen
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.32 times more return on investment than Yindu Kitchen. However, Guangzhou Haige is 1.32 times more volatile than Yindu Kitchen Equipment. It trades about 0.01 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.04 per unit of risk. If you would invest 1,033 in Guangzhou Haige Communications on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Guangzhou Haige Communications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Yindu Kitchen Equipment |
Guangzhou Haige and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Yindu Kitchen
The main advantage of trading using opposite Guangzhou Haige and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
| 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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