Correlation Between Yindu Kitchen and Hangzhou Weiguang
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Yindu Kitchen and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Hangzhou Weiguang.
Diversification Opportunities for Yindu Kitchen and Hangzhou Weiguang
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yindu and Hangzhou is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Hangzhou Weiguang
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 221.15 times less return on investment than Hangzhou Weiguang. But when comparing it to its historical volatility, Yindu Kitchen Equipment is 1.68 times less risky than Hangzhou Weiguang. It trades about 0.0 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,092 in Hangzhou Weiguang Electronic on September 2, 2024 and sell it today you would earn a total of 344.00 from holding Hangzhou Weiguang Electronic or generate 16.44% 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. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Hangzhou Weiguang |
Yindu Kitchen and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Hangzhou Weiguang
The main advantage of trading using opposite Yindu Kitchen and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Yindu Kitchen vs. New China Life | Yindu Kitchen vs. Ming Yang Smart | Yindu Kitchen vs. 159681 | Yindu Kitchen vs. 159005 |
| Hangzhou Weiguang vs. Shaanxi Broadcast TV | Hangzhou Weiguang vs. Zhongshan Broad Ocean Motor | Hangzhou Weiguang vs. Shanghai Metersbonwe FashionAccessories | Hangzhou Weiguang vs. Yindu Kitchen Equipment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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