Correlation Between Guangzhou Automobile and Yindu Kitchen
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By analyzing existing cross correlation between Guangzhou Automobile Group and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Guangzhou Automobile 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 Guangzhou Automobile with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Yindu Kitchen.
Diversification Opportunities for Guangzhou Automobile and Yindu Kitchen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Yindu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group 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 Guangzhou Automobile 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 Guangzhou Automobile Group 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 Guangzhou Automobile i.e., Guangzhou Automobile and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Yindu Kitchen
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Yindu Kitchen. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 1.19 times less risky than Yindu Kitchen. The stock trades about -0.01 of its potential returns per unit of risk. The Yindu Kitchen Equipment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,626 in Yindu Kitchen Equipment on September 14, 2024 and sell it today you would earn a total of 819.00 from holding Yindu Kitchen Equipment or generate 50.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Guangzhou Automobile |
| Yindu Kitchen Equipment |
Guangzhou Automobile and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Yindu Kitchen
The main advantage of trading using opposite Guangzhou Automobile and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile 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.| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
| Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. China Mobile Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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