Correlation Between Heilongjiang Transport and Yindu Kitchen
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By analyzing existing cross correlation between Heilongjiang Transport Development and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Yindu Kitchen.
Diversification Opportunities for Heilongjiang Transport and Yindu Kitchen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heilongjiang and Yindu is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop 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 Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Yindu Kitchen
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to under-perform the Yindu Kitchen. But the stock apears to be less risky and, when comparing its historical volatility, Heilongjiang Transport Development is 1.49 times less risky than Yindu Kitchen. The stock trades about -0.19 of its potential returns per unit of risk. The Yindu Kitchen Equipment is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,353 in Yindu Kitchen Equipment on October 30, 2024 and sell it today you would earn a total of 212.00 from holding Yindu Kitchen Equipment or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Heilongjiang Transport |
| Yindu Kitchen Equipment |
Heilongjiang Transport and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Yindu Kitchen
The main advantage of trading using opposite Heilongjiang Transport and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Guilin Seamild Foods | Heilongjiang Transport vs. Jiahe Foods Industry | Heilongjiang Transport vs. Anji Foodstuff Co |
| Yindu Kitchen vs. Shanghai Shuixing Home | Yindu Kitchen vs. Soyea Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Jiugui Liquor Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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