Correlation Between Weihai Honglin and Yindu Kitchen
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By analyzing existing cross correlation between Weihai Honglin Electronic and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Yindu Kitchen.
Diversification Opportunities for Weihai Honglin and Yindu Kitchen
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Weihai and Yindu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Weihai Honglin and Yindu Kitchen
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.44 times more return on investment than Yindu Kitchen. However, Weihai Honglin is 1.44 times more volatile than Yindu Kitchen Equipment. It trades about 0.0 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.02 per unit of risk. If you would invest 1,515 in Weihai Honglin Electronic on August 25, 2024 and sell it today you would lose (176.00) from holding Weihai Honglin Electronic or give up 11.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Yindu Kitchen Equipment |
Weihai Honglin and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Yindu Kitchen
The main advantage of trading using opposite Weihai Honglin and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network Technology |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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