Correlation Between Yindu Kitchen and Chengdu Xingrong
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Yindu Kitchen and Chengdu Xingrong 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 Yindu Kitchen with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Chengdu Xingrong.
Diversification Opportunities for Yindu Kitchen and Chengdu Xingrong
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yindu and Chengdu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Yindu Kitchen 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 Yindu Kitchen Equipment are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Chengdu Xingrong
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 1.28 times more return on investment than Chengdu Xingrong. However, Yindu Kitchen is 1.28 times more volatile than Chengdu Xingrong Investment. It trades about 0.2 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.03 per unit of risk. If you would invest 2,358 in Yindu Kitchen Equipment on October 17, 2024 and sell it today you would earn a total of 206.00 from holding Yindu Kitchen Equipment or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Chengdu Xingrong Inv |
Yindu Kitchen and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Chengdu Xingrong
The main advantage of trading using opposite Yindu Kitchen and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Yindu Kitchen vs. Cangzhou Mingzhu Plastic | Yindu Kitchen vs. Kangping Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Holitech Technology Co |
| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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