Correlation Between Yindu Kitchen and HeNan Splendor
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By analyzing existing cross correlation between Yindu Kitchen Equipment and HeNan Splendor Science, you can compare the effects of market volatilities on Yindu Kitchen and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and HeNan Splendor.
Diversification Opportunities for Yindu Kitchen and HeNan Splendor
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and HeNan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and HeNan Splendor go up and down completely randomly.
Pair Corralation between Yindu Kitchen and HeNan Splendor
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.71 times more return on investment than HeNan Splendor. However, Yindu Kitchen Equipment is 1.41 times less risky than HeNan Splendor. It trades about 0.05 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.02 per unit of risk. If you would invest 1,649 in Yindu Kitchen Equipment on October 16, 2024 and sell it today you would earn a total of 729.00 from holding Yindu Kitchen Equipment or generate 44.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. HeNan Splendor Science
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| HeNan Splendor Science |
Yindu Kitchen and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and HeNan Splendor
The main advantage of trading using opposite Yindu Kitchen and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Yindu Kitchen vs. Shenzhen SDG Information | Yindu Kitchen vs. Guangzhou Ruoyuchen Information | Yindu Kitchen vs. Zhongfu Information | Yindu Kitchen vs. Iat Automobile Technology |
| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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