Correlation Between Yindu Kitchen and Xinjiang Baodi
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Yindu Kitchen and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Xinjiang Baodi.
Diversification Opportunities for Yindu Kitchen and Xinjiang Baodi
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yindu and Xinjiang is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Xinjiang Baodi
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.81 times more return on investment than Xinjiang Baodi. However, Yindu Kitchen Equipment is 1.23 times less risky than Xinjiang Baodi. It trades about 0.19 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.19 per unit of risk. If you would invest 2,353 in Yindu Kitchen Equipment on October 30, 2024 and sell it today you would earn a total of 212.00 from holding Yindu Kitchen Equipment or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Xinjiang Baodi Mining |
Yindu Kitchen and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Xinjiang Baodi
The main advantage of trading using opposite Yindu Kitchen and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi'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 |
| Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Nuode Investment Co | Xinjiang Baodi vs. Zoje Resources Investment | Xinjiang Baodi vs. Jiangsu Xinri E Vehicle |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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