Correlation Between Yindu Kitchen and Guangzhou Haige
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Guangzhou Haige Communications, you can compare the effects of market volatilities on Yindu Kitchen and Guangzhou Haige 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 Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Guangzhou Haige.
Diversification Opportunities for Yindu Kitchen and Guangzhou Haige
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and Guangzhou is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Guangzhou Haige
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.76 times more return on investment than Guangzhou Haige. However, Yindu Kitchen Equipment is 1.31 times less risky than Guangzhou Haige. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.01 per unit of risk. If you would invest 2,582 in Yindu Kitchen Equipment on October 30, 2024 and sell it today you would lose (17.00) from holding Yindu Kitchen Equipment or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Guangzhou Haige Comm |
Yindu Kitchen and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Guangzhou Haige
The main advantage of trading using opposite Yindu Kitchen and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Yindu Kitchen vs. Shanghai Shuixing Home | Yindu Kitchen vs. Soyea Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Jiugui Liquor Co |
| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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