Correlation Between Yindu Kitchen and Guangdong Marubi
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Yindu Kitchen and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Guangdong Marubi.
Diversification Opportunities for Yindu Kitchen and Guangdong Marubi
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yindu and Guangdong is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Guangdong Marubi
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 1.03 times more return on investment than Guangdong Marubi. However, Yindu Kitchen is 1.03 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.21 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.15 per unit of risk. If you would invest 2,390 in Yindu Kitchen Equipment on November 23, 2024 and sell it today you would earn a total of 418.00 from holding Yindu Kitchen Equipment or generate 17.49% 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. Guangdong Marubi Biotechnology
Performance |
Timeline |
Yindu Kitchen Equipment |
Guangdong Marubi Bio |
Yindu Kitchen and Guangdong Marubi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yindu Kitchen and Guangdong Marubi
The main advantage of trading using opposite Yindu Kitchen and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.Yindu Kitchen vs. Guangdong Jingyi Metal | ||
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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