Correlation Between Chahua Modern and Yindu Kitchen
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By analyzing existing cross correlation between Chahua Modern Housewares and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Chahua Modern and Yindu Kitchen 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 Chahua Modern with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Yindu Kitchen.
Diversification Opportunities for Chahua Modern and Yindu Kitchen
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chahua and Yindu is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of Chahua Modern i.e., Chahua Modern and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Chahua Modern and Yindu Kitchen
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to under-perform the Yindu Kitchen. In addition to that, Chahua Modern is 1.97 times more volatile than Yindu Kitchen Equipment. It trades about -0.01 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.2 per unit of volatility. 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 |
Chahua Modern Housewares vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Chahua Modern Housewares |
| Yindu Kitchen Equipment |
Chahua Modern and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Yindu Kitchen
The main advantage of trading using opposite Chahua Modern and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| Chahua Modern vs. Sichuan Hebang Biotechnology | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. Keda Clean Energy | Chahua Modern vs. Fujian Wanchen Biotechnology |
| Yindu Kitchen vs. Cangzhou Mingzhu Plastic | Yindu Kitchen vs. Kangping Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Holitech Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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