Correlation Between Yindu Kitchen and Cambricon Technologies
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Cambricon Technologies Corp, you can compare the effects of market volatilities on Yindu Kitchen and Cambricon Technologies 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 Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Cambricon Technologies.
Diversification Opportunities for Yindu Kitchen and Cambricon Technologies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yindu and Cambricon is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies 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 Cambricon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambricon Technologies has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Cambricon Technologies
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 11.69 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, Yindu Kitchen Equipment is 2.65 times less risky than Cambricon Technologies. It trades about 0.06 of its potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 54,603 in Cambricon Technologies Corp on September 29, 2024 and sell it today you would earn a total of 10,607 from holding Cambricon Technologies Corp or generate 19.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Cambricon Technologies |
Yindu Kitchen and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Cambricon Technologies
The main advantage of trading using opposite Yindu Kitchen and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Cambricon Technologies 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 Cambricon Technologies will offset losses from the drop in Cambricon Technologies' long position.| Yindu Kitchen vs. Bank of China | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. PetroChina Co Ltd | Yindu Kitchen vs. Bank of Communications |
| Cambricon Technologies vs. Ming Yang Smart | Cambricon Technologies vs. 159681 | Cambricon Technologies vs. 159005 | Cambricon Technologies vs. Loctek Ergonomic Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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