Correlation Between Yindu Kitchen and Shenzhen Kexin
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Yindu Kitchen and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Shenzhen Kexin.
Diversification Opportunities for Yindu Kitchen and Shenzhen Kexin
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yindu and Shenzhen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Shenzhen Kexin
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Shenzhen Kexin. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.87 times less risky than Shenzhen Kexin. The stock trades about -0.04 of its potential returns per unit of risk. The Shenzhen Kexin Communication is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,010 in Shenzhen Kexin Communication on October 30, 2024 and sell it today you would earn a total of 195.00 from holding Shenzhen Kexin Communication or generate 19.31% 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. Shenzhen Kexin Communication
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Shenzhen Kexin Commu |
Yindu Kitchen and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Shenzhen Kexin
The main advantage of trading using opposite Yindu Kitchen and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin'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 |
| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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