Correlation Between Yindu Kitchen and Zhongshan Public
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Zhongshan Public Utilities, you can compare the effects of market volatilities on Yindu Kitchen and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Zhongshan Public.
Diversification Opportunities for Yindu Kitchen and Zhongshan Public
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yindu and Zhongshan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Zhongshan Public go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Zhongshan Public
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 1.42 times more return on investment than Zhongshan Public. However, Yindu Kitchen is 1.42 times more volatile than Zhongshan Public Utilities. It trades about 0.04 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.05 per unit of risk. If you would invest 2,123 in Yindu Kitchen Equipment on December 1, 2024 and sell it today you would earn a total of 744.00 from holding Yindu Kitchen Equipment or generate 35.04% 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. Zhongshan Public Utilities
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Zhongshan Public Uti |
Yindu Kitchen and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Zhongshan Public
The main advantage of trading using opposite Yindu Kitchen and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Yindu Kitchen vs. Shandong Sinoglory Health | Yindu Kitchen vs. Shanghai Rongtai Health | Yindu Kitchen vs. Guangzhou Automobile Group | Yindu Kitchen vs. Chongqing Changan Automobile |
| Zhongshan Public vs. Jiangxi Lianchuang Opto electronic | Zhongshan Public vs. Sihui Fuji Electronics | Zhongshan Public vs. Success Electronics | Zhongshan Public vs. Hygon Information Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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