Correlation Between Anhui Deli and Yindu Kitchen
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By analyzing existing cross correlation between Anhui Deli Household and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Anhui Deli 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 Anhui Deli with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Yindu Kitchen.
Diversification Opportunities for Anhui Deli and Yindu Kitchen
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Yindu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household 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 Anhui Deli 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 Anhui Deli Household 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 Anhui Deli i.e., Anhui Deli and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Anhui Deli and Yindu Kitchen
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Yindu Kitchen. In addition to that, Anhui Deli is 1.76 times more volatile than Yindu Kitchen Equipment. It trades about -0.05 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.02 per unit of volatility. If you would invest 2,408 in Yindu Kitchen Equipment on September 1, 2024 and sell it today you would lose (23.00) from holding Yindu Kitchen Equipment or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Anhui Deli Household |
| Yindu Kitchen Equipment |
Anhui Deli and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Yindu Kitchen
The main advantage of trading using opposite Anhui Deli and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli 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.| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Bank of China | Anhui Deli vs. Agricultural Bank of |
| Yindu Kitchen vs. New China Life | Yindu Kitchen vs. Ming Yang Smart | Yindu Kitchen vs. 159681 | Yindu Kitchen vs. 159005 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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