Correlation Between Yindu Kitchen and Anhui Huilong
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Yindu Kitchen and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Anhui Huilong.
Diversification Opportunities for Yindu Kitchen and Anhui Huilong
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and Anhui is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Anhui Huilong go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Anhui Huilong
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.94 times more return on investment than Anhui Huilong. However, Yindu Kitchen Equipment is 1.07 times less risky than Anhui Huilong. It trades about 0.04 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.01 per unit of risk. If you would invest 1,733 in Yindu Kitchen Equipment on September 4, 2024 and sell it today you would earn a total of 659.00 from holding Yindu Kitchen Equipment or generate 38.03% 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. Anhui Huilong Agricultural
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Anhui Huilong Agricu |
Yindu Kitchen and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Anhui Huilong
The main advantage of trading using opposite Yindu Kitchen and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Yindu Kitchen vs. Chengdu Kanghua Biological | Yindu Kitchen vs. Beijing Wantai Biological | Yindu Kitchen vs. Suzhou Novoprotein Scientific | Yindu Kitchen vs. Aluminum Corp of |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Rongsheng Petrochemical Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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