Correlation Between Yindu Kitchen and Shenzhen
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Shenzhen SC New, you can compare the effects of market volatilities on Yindu Kitchen and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Shenzhen.
Diversification Opportunities for Yindu Kitchen and Shenzhen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and Shenzhen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Shenzhen SC New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SC New 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SC New has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Shenzhen go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Shenzhen
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.78 times less risky than Shenzhen. The stock trades about 0.0 of its potential returns per unit of risk. The Shenzhen SC New is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,030 in Shenzhen SC New on September 12, 2024 and sell it today you would earn a total of 751.00 from holding Shenzhen SC New or generate 12.45% 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. Shenzhen SC New
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Shenzhen SC New |
Yindu Kitchen and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Shenzhen
The main advantage of trading using opposite Yindu Kitchen and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Bank of China | Yindu Kitchen vs. PetroChina Co Ltd |
| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Lander Sports Development | Shenzhen vs. Shenzhen Silver Basis | Shenzhen vs. Tianjin Silvery Dragon |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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