Correlation Between Ye Chiu and Yindu Kitchen
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By analyzing existing cross correlation between Ye Chiu Metal and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Yindu Kitchen.
Diversification Opportunities for Ye Chiu and Yindu Kitchen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 601388 and Yindu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Ye Chiu and Yindu Kitchen
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Yindu Kitchen. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.49 times less risky than Yindu Kitchen. The stock trades about -0.23 of its potential returns per unit of risk. The Yindu Kitchen Equipment is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,390 in Yindu Kitchen Equipment on October 22, 2024 and sell it today you would earn a total of 356.00 from holding Yindu Kitchen Equipment or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Ye Chiu Metal |
| Yindu Kitchen Equipment |
Ye Chiu and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Yindu Kitchen
The main advantage of trading using opposite Ye Chiu and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. North Copper Shanxi | Ye Chiu vs. 360 Security Technology | Ye Chiu vs. Chengtun Mining Group | Ye Chiu vs. Kuangda Technology Group |
| Yindu Kitchen vs. Chengdu Xingrong Investment | Yindu Kitchen vs. Jiangsu Yueda Investment | Yindu Kitchen vs. Tieling Newcity Investment | Yindu Kitchen vs. Tibet Huayu Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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