Correlation Between Fuda Alloy and Yindu Kitchen
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By analyzing existing cross correlation between Fuda Alloy Materials and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Fuda Alloy 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 Fuda Alloy with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Yindu Kitchen.
Diversification Opportunities for Fuda Alloy and Yindu Kitchen
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fuda and Yindu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials 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 Fuda Alloy 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 Fuda Alloy Materials 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 Fuda Alloy i.e., Fuda Alloy and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Fuda Alloy and Yindu Kitchen
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 2.21 times more return on investment than Yindu Kitchen. However, Fuda Alloy is 2.21 times more volatile than Yindu Kitchen Equipment. It trades about 0.16 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.17 per unit of risk. If you would invest 1,160 in Fuda Alloy Materials on August 24, 2024 and sell it today you would earn a total of 154.00 from holding Fuda Alloy Materials or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Fuda Alloy Materials |
| Yindu Kitchen Equipment |
Fuda Alloy and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Yindu Kitchen
The main advantage of trading using opposite Fuda Alloy and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy 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.| Fuda Alloy vs. Chengdu Kanghua Biological | Fuda Alloy vs. Beijing Wantai Biological | Fuda Alloy vs. Suzhou Novoprotein Scientific | Fuda Alloy vs. Aluminum Corp of |
| Yindu Kitchen vs. Sunwave Communications Co | Yindu Kitchen vs. Telling Telecommunication Holding | Yindu Kitchen vs. Allied Machinery Co | Yindu Kitchen vs. Wuhan Yangtze Communication |
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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