Correlation Between Zhejiang Yongjin and Yindu Kitchen
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Zhejiang Yongjin 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 Zhejiang Yongjin with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Yindu Kitchen.
Diversification Opportunities for Zhejiang Yongjin and Yindu Kitchen
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Yindu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal 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 Zhejiang Yongjin 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 Zhejiang Yongjin Metal 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 Zhejiang Yongjin i.e., Zhejiang Yongjin and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Yindu Kitchen
Assuming the 90 days trading horizon Zhejiang Yongjin is expected to generate 1.29 times less return on investment than Yindu Kitchen. But when comparing it to its historical volatility, Zhejiang Yongjin Metal is 1.31 times less risky than Yindu Kitchen. It trades about 0.19 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,353 in Yindu Kitchen Equipment on October 30, 2024 and sell it today you would earn a total of 212.00 from holding Yindu Kitchen Equipment or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Yindu Kitchen Equipment |
Zhejiang Yongjin and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Yindu Kitchen
The main advantage of trading using opposite Zhejiang Yongjin and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin 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.| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining |
| Yindu Kitchen vs. Shanghai Shuixing Home | Yindu Kitchen vs. Soyea Technology Co | Yindu Kitchen vs. Jiujiang Shanshui Technology | Yindu Kitchen vs. Jiugui Liquor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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