Correlation Between Yindu Kitchen and Sichuan Hebang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yindu Kitchen Equipment and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Yindu Kitchen and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Sichuan Hebang.
Diversification Opportunities for Yindu Kitchen and Sichuan Hebang
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yindu and Sichuan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Sichuan Hebang
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to under-perform the Sichuan Hebang. But the stock apears to be less risky and, when comparing its historical volatility, Yindu Kitchen Equipment is 1.31 times less risky than Sichuan Hebang. The stock trades about -0.05 of its potential returns per unit of risk. The Sichuan Hebang Biotechnology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Sichuan Hebang Biotechnology on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Sichuan Hebang Biotechnology or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Sichuan Hebang Biote |
Yindu Kitchen and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Sichuan Hebang
The main advantage of trading using opposite Yindu Kitchen and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Yindu Kitchen vs. Chengdu Kanghua Biological | Yindu Kitchen vs. Beijing Wantai Biological | Yindu Kitchen vs. Suzhou Novoprotein Scientific | Yindu Kitchen vs. Aluminum Corp of |
| Sichuan Hebang vs. Vanfund Urban Investment | Sichuan Hebang vs. Jointo Energy Investment | Sichuan Hebang vs. Yindu Kitchen Equipment | Sichuan Hebang vs. Tieling Newcity 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance |