Correlation Between Yindu Kitchen and Chongqing Changan
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Chongqing Changan Automobile, you can compare the effects of market volatilities on Yindu Kitchen and Chongqing Changan 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 Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Chongqing Changan.
Diversification Opportunities for Yindu Kitchen and Chongqing Changan
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yindu and Chongqing is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan 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 Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Chongqing Changan go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Chongqing Changan
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Chongqing Changan. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.39 times less risky than Chongqing Changan. The stock trades about -0.02 of its potential returns per unit of risk. The Chongqing Changan Automobile is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,620 in Chongqing Changan Automobile on September 15, 2024 and sell it today you would lose (203.00) from holding Chongqing Changan Automobile or give up 12.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Chongqing Changan |
Yindu Kitchen and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Chongqing Changan
The main advantage of trading using opposite Yindu Kitchen and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. China Mobile Limited |
| Chongqing Changan vs. Success Electronics | Chongqing Changan vs. Chongqing Shunbo Aluminum | Chongqing Changan vs. Leaguer Shenzhen MicroElectronics | Chongqing Changan vs. Nantong Haixing Electronics |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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