Correlation Between Chinese Universe and Yindu Kitchen
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By analyzing existing cross correlation between Chinese Universe Publishing and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Yindu Kitchen.
Diversification Opportunities for Chinese Universe and Yindu Kitchen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and Yindu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Chinese Universe and Yindu Kitchen
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.17 times more return on investment than Yindu Kitchen. However, Chinese Universe is 1.17 times more volatile than Yindu Kitchen Equipment. It trades about -0.04 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.1 per unit of risk. If you would invest 1,516 in Chinese Universe Publishing on September 3, 2024 and sell it today you would lose (256.00) from holding Chinese Universe Publishing or give up 16.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Chinese Universe Pub |
| Yindu Kitchen Equipment |
Chinese Universe and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Yindu Kitchen
The main advantage of trading using opposite Chinese Universe and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. Innovative Medical Management | Chinese Universe vs. Fujian Newland Computer | Chinese Universe vs. State Grid InformationCommunication | Chinese Universe vs. Sanbo Hospital Management |
| Yindu Kitchen vs. Shanghai Action Education | Yindu Kitchen vs. Chinese Universe Publishing | Yindu Kitchen vs. Ningxia Building Materials | Yindu Kitchen vs. China Publishing Media |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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