Correlation Between Yindu Kitchen and Dongjiang Environmental
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Dongjiang Environmental Co, you can compare the effects of market volatilities on Yindu Kitchen and Dongjiang Environmental 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 Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Dongjiang Environmental.
Diversification Opportunities for Yindu Kitchen and Dongjiang Environmental
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yindu and Dongjiang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental 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 Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Dongjiang Environmental
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.95 times more return on investment than Dongjiang Environmental. However, Yindu Kitchen Equipment is 1.05 times less risky than Dongjiang Environmental. It trades about 0.05 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about -0.01 per unit of risk. If you would invest 1,639 in Yindu Kitchen Equipment on August 28, 2024 and sell it today you would earn a total of 704.00 from holding Yindu Kitchen Equipment or generate 42.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Dongjiang Environmental Co
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Dongjiang Environmental |
Yindu Kitchen and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Dongjiang Environmental
The main advantage of trading using opposite Yindu Kitchen and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental'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 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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