Correlation Between Yindu Kitchen and Guangzhou Seagull
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Yindu Kitchen and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Guangzhou Seagull.
Diversification Opportunities for Yindu Kitchen and Guangzhou Seagull
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yindu and Guangzhou is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Guangzhou Seagull
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.58 times less risky than Guangzhou Seagull. The stock trades about -0.21 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 312.00 in Guangzhou Seagull Kitchen on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Guangzhou Seagull Kitchen or generate 4.49% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Guangzhou Seagull Kitchen |
Yindu Kitchen and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Guangzhou Seagull
The main advantage of trading using opposite Yindu Kitchen and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Yindu Kitchen vs. Biwin Storage Technology | Yindu Kitchen vs. PetroChina Co Ltd | Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. China Construction Bank |
| Guangzhou Seagull vs. Suzhou Xingye Material | Guangzhou Seagull vs. Fujian Longzhou Transportation | Guangzhou Seagull vs. King Strong New Material | Guangzhou Seagull vs. Sinosteel Luonai Materials |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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