Correlation Between Yindu Kitchen and Bank of China
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Bank of China, you can compare the effects of market volatilities on Yindu Kitchen and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Bank of China.
Diversification Opportunities for Yindu Kitchen and Bank of China
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and Bank is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Bank of China go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Bank of China
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 23.47 times less return on investment than Bank of China. In addition to that, Yindu Kitchen is 1.54 times more volatile than Bank of China. It trades about 0.01 of its total potential returns per unit of risk. Bank of China is currently generating about 0.25 per unit of volatility. If you would invest 521.00 in Bank of China on October 11, 2024 and sell it today you would earn a total of 31.00 from holding Bank of China or generate 5.95% 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. Bank of China
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Bank of China |
Yindu Kitchen and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Bank of China
The main advantage of trading using opposite Yindu Kitchen and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Yindu Kitchen vs. CITIC Guoan Information | Yindu Kitchen vs. Digital China Information | Yindu Kitchen vs. Sublime China Information | Yindu Kitchen vs. Shenzhen Centralcon Investment |
| Bank of China vs. Guangxi Wuzhou Communications | Bank of China vs. Tianshui Huatian Technology | Bank of China vs. Jiujiang Shanshui Technology | Bank of China vs. Yindu Kitchen Equipment |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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