Correlation Between Yindu Kitchen and Guangzhou Automobile
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Guangzhou Automobile Group, you can compare the effects of market volatilities on Yindu Kitchen and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Guangzhou Automobile.
Diversification Opportunities for Yindu Kitchen and Guangzhou Automobile
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and Guangzhou is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Guangzhou Automobile
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 1.19 times more return on investment than Guangzhou Automobile. However, Yindu Kitchen is 1.19 times more volatile than Guangzhou Automobile Group. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about -0.01 per unit of risk. If you would invest 1,626 in Yindu Kitchen Equipment on September 14, 2024 and sell it today you would earn a total of 819.00 from holding Yindu Kitchen Equipment or generate 50.37% 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. Guangzhou Automobile Group
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Guangzhou Automobile |
Yindu Kitchen and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Guangzhou Automobile
The main advantage of trading using opposite Yindu Kitchen and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. China Mobile Limited |
| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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