Correlation Between Kuang Chi and Yindu Kitchen
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By analyzing existing cross correlation between Kuang Chi Technologies and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Yindu Kitchen.
Diversification Opportunities for Kuang Chi and Yindu Kitchen
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kuang and Yindu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies 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 Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Kuang Chi and Yindu Kitchen
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Yindu Kitchen. In addition to that, Kuang Chi is 1.49 times more volatile than Yindu Kitchen Equipment. It trades about -0.2 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 29, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Kuang Chi Technologies |
| Yindu Kitchen Equipment |
Kuang Chi and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Yindu Kitchen
The main advantage of trading using opposite Kuang Chi and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Bank of Communications | Kuang Chi vs. Sichuan Jinshi Technology | Kuang Chi vs. Fujian Newland Computer | Kuang Chi vs. Wuhan Yangtze Communication |
| Yindu Kitchen vs. Xiangyang Automobile Bearing | Yindu Kitchen vs. Shandong Sanyuan Biotechnology | Yindu Kitchen vs. Sichuan Hebang Biotechnology | Yindu Kitchen vs. Shanghai Rightongene Biotechnology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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