Correlation Between Yindu Kitchen and Shanghai Newtouch
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Shanghai Newtouch Software, you can compare the effects of market volatilities on Yindu Kitchen and Shanghai Newtouch 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 Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Shanghai Newtouch.
Diversification Opportunities for Yindu Kitchen and Shanghai Newtouch
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and Shanghai is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Shanghai Newtouch
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.45 times more return on investment than Shanghai Newtouch. However, Yindu Kitchen Equipment is 2.21 times less risky than Shanghai Newtouch. It trades about 0.01 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.4 per unit of risk. If you would invest 2,430 in Yindu Kitchen Equipment on October 11, 2024 and sell it today you would lose (1.00) from holding Yindu Kitchen Equipment or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yindu Kitchen Equipment vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Yindu Kitchen Equipment |
| Shanghai Newtouch |
Yindu Kitchen and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yindu Kitchen and Shanghai Newtouch
The main advantage of trading using opposite Yindu Kitchen and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Shanghai Newtouch 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 Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Yindu Kitchen vs. CITIC Guoan Information | Yindu Kitchen vs. Digital China Information | Yindu Kitchen vs. Sublime China Information | Yindu Kitchen vs. Shenzhen Centralcon Investment |
| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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