Correlation Between Yindu Kitchen and State Grid
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By analyzing existing cross correlation between Yindu Kitchen Equipment and State Grid InformationCommunication, you can compare the effects of market volatilities on Yindu Kitchen and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and State Grid.
Diversification Opportunities for Yindu Kitchen and State Grid
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and State is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and State Grid go up and down completely randomly.
Pair Corralation between Yindu Kitchen and State Grid
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 1.97 times less return on investment than State Grid. But when comparing it to its historical volatility, Yindu Kitchen Equipment is 1.37 times less risky than State Grid. It trades about 0.02 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,583 in State Grid InformationCommunication on November 7, 2024 and sell it today you would earn a total of 197.00 from holding State Grid InformationCommunication or generate 12.44% 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. State Grid InformationCommunic
Performance |
| Timeline |
| Yindu Kitchen Equipment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| State Grid Informati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yindu Kitchen and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and State Grid
The main advantage of trading using opposite Yindu Kitchen and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.The idea behind Yindu Kitchen Equipment and State Grid InformationCommunication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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