Correlation Between Yindu Kitchen and Shanghai Action
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Shanghai Action Education, you can compare the effects of market volatilities on Yindu Kitchen and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Shanghai Action.
Diversification Opportunities for Yindu Kitchen and Shanghai Action
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yindu and Shanghai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Shanghai Action go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Shanghai Action
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 1.08 times less return on investment than Shanghai Action. But when comparing it to its historical volatility, Yindu Kitchen Equipment is 1.3 times less risky than Shanghai Action. It trades about 0.04 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,639 in Shanghai Action Education on September 3, 2024 and sell it today you would earn a total of 935.00 from holding Shanghai Action Education or generate 35.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Shanghai Action Education
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Shanghai Action Education |
Yindu Kitchen and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Shanghai Action
The main advantage of trading using opposite Yindu Kitchen and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Yindu Kitchen vs. Shanghai Action Education | Yindu Kitchen vs. Chinese Universe Publishing | Yindu Kitchen vs. Ningxia Building Materials | Yindu Kitchen vs. China Publishing Media |
| Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. China Mobile Limited | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. China Life Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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