Correlation Between Tibet Huayu and Yindu Kitchen
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By analyzing existing cross correlation between Tibet Huayu Mining and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Yindu Kitchen.
Diversification Opportunities for Tibet Huayu and Yindu Kitchen
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tibet and Yindu is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining 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 Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Tibet Huayu and Yindu Kitchen
Assuming the 90 days trading horizon Tibet Huayu is expected to generate 1.07 times less return on investment than Yindu Kitchen. But when comparing it to its historical volatility, Tibet Huayu Mining is 1.04 times less risky than Yindu Kitchen. It trades about 0.27 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,268 in Yindu Kitchen Equipment on November 3, 2024 and sell it today you would earn a total of 297.00 from holding Yindu Kitchen Equipment or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Tibet Huayu Mining |
| Yindu Kitchen Equipment |
Tibet Huayu and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Yindu Kitchen
The main advantage of trading using opposite Tibet Huayu and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. Henan Shuanghui Investment | Tibet Huayu vs. Aluminum Corp of | Tibet Huayu vs. Cultural Investment Holdings | Tibet Huayu vs. Ye Chiu Metal |
| Yindu Kitchen vs. Xiangpiaopiao Food Co | Yindu Kitchen vs. New Hope Dairy | Yindu Kitchen vs. Gan Yuan Foods | Yindu Kitchen vs. Jiahe Foods Industry |
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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