Correlation Between Shenzhen Kexin and Yindu Kitchen
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Yindu Kitchen.
Diversification Opportunities for Shenzhen Kexin and Yindu Kitchen
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Yindu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication 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 Shenzhen Kexin 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 Shenzhen Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Yindu Kitchen
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to generate 1.87 times more return on investment than Yindu Kitchen. However, Shenzhen Kexin is 1.87 times more volatile than Yindu Kitchen Equipment. It trades about 0.05 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 1,010 in Shenzhen Kexin Communication on October 30, 2024 and sell it today you would earn a total of 195.00 from holding Shenzhen Kexin Communication or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Yindu Kitchen Equipment |
Shenzhen Kexin and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Yindu Kitchen
The main advantage of trading using opposite Shenzhen Kexin and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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