Correlation Between Wuhan Yangtze and Yindu Kitchen
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Yindu Kitchen.
Diversification Opportunities for Wuhan Yangtze and Yindu Kitchen
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and Yindu is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze 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 Wuhan Yangtze 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 Wuhan Yangtze 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 Wuhan Yangtze i.e., Wuhan Yangtze and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Yindu Kitchen
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.76 times more return on investment than Yindu Kitchen. However, Wuhan Yangtze is 2.76 times more volatile than Yindu Kitchen Equipment. It trades about 0.09 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.06 per unit of risk. If you would invest 1,898 in Wuhan Yangtze Communication on November 6, 2024 and sell it today you would earn a total of 395.00 from holding Wuhan Yangtze Communication or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Yindu Kitchen Equipment |
Wuhan Yangtze and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Yindu Kitchen
The main advantage of trading using opposite Wuhan Yangtze and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Qingdao Haier Biomedical | Wuhan Yangtze vs. Sinomach Automobile Co | Wuhan Yangtze vs. Wintao Communications Co | Wuhan Yangtze vs. Dongfeng Automobile Co |
| Yindu Kitchen vs. Shenzhen Silver Basis | Yindu Kitchen vs. Zijin Mining Group | Yindu Kitchen vs. JCHX Mining Management | Yindu Kitchen vs. Hubei Xingfa Chemicals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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