Correlation Between Yindu Kitchen and Chahua Modern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yindu Kitchen Equipment and Chahua Modern Housewares, you can compare the effects of market volatilities on Yindu Kitchen and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Chahua Modern.
Diversification Opportunities for Yindu Kitchen and Chahua Modern
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and Chahua is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Chahua Modern go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Chahua Modern
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.51 times more return on investment than Chahua Modern. However, Yindu Kitchen Equipment is 1.97 times less risky than Chahua Modern. It trades about 0.2 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about -0.01 per unit of risk. If you would invest 2,358 in Yindu Kitchen Equipment on October 17, 2024 and sell it today you would earn a total of 206.00 from holding Yindu Kitchen Equipment or generate 8.74% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Chahua Modern Housewares |
Yindu Kitchen and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Chahua Modern
The main advantage of trading using opposite Yindu Kitchen and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Yindu Kitchen vs. Cangzhou Mingzhu Plastic | Yindu Kitchen vs. Kangping Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Holitech Technology Co |
| Chahua Modern vs. Sichuan Hebang Biotechnology | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. Keda Clean Energy | Chahua Modern vs. Fujian Wanchen Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| 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 | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |