Correlation Between Yindu Kitchen and DO Home
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By analyzing existing cross correlation between Yindu Kitchen Equipment and DO Home Collection, you can compare the effects of market volatilities on Yindu Kitchen and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and DO Home.
Diversification Opportunities for Yindu Kitchen and DO Home
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and 002798 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and DO Home go up and down completely randomly.
Pair Corralation between Yindu Kitchen and DO Home
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.37 times more return on investment than DO Home. However, Yindu Kitchen Equipment is 2.74 times less risky than DO Home. It trades about 0.02 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.04 per unit of risk. If you would invest 2,438 in Yindu Kitchen Equipment on October 16, 2024 and sell it today you would earn a total of 25.00 from holding Yindu Kitchen Equipment or generate 1.03% 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. DO Home Collection
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| DO Home Collection |
Yindu Kitchen and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and DO Home
The main advantage of trading using opposite Yindu Kitchen and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Yindu Kitchen vs. Rising Nonferrous Metals | Yindu Kitchen vs. Western Metal Materials | Yindu Kitchen vs. Heilongjiang Transport Development | Yindu Kitchen vs. Zhejiang Yongjin Metal |
| DO Home vs. Cultural Investment Holdings | DO Home vs. Yindu Kitchen Equipment | DO Home vs. Juneyao Airlines | DO Home vs. Hubei Geoway Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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