Correlation Between State Grid and Yindu Kitchen
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By analyzing existing cross correlation between State Grid InformationCommunication and Yindu Kitchen Equipment, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Yindu Kitchen.
Diversification Opportunities for State Grid and Yindu Kitchen
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between State and Yindu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and Yindu Kitchen go up and down completely randomly.
Pair Corralation between State Grid and Yindu Kitchen
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 2.48 times more return on investment than Yindu Kitchen. However, State Grid is 2.48 times more volatile than Yindu Kitchen Equipment. It trades about 0.08 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.24 per unit of risk. If you would invest 1,935 in State Grid InformationCommunication on August 28, 2024 and sell it today you would earn a total of 109.00 from holding State Grid InformationCommunication or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| State Grid Informati |
| Yindu Kitchen Equipment |
State Grid and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Yindu Kitchen
The main advantage of trading using opposite State Grid and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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