Correlation Between Shanghai V-Test and Yindu Kitchen
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Shanghai V-Test 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 Shanghai V-Test with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V-Test and Yindu Kitchen.
Diversification Opportunities for Shanghai V-Test and Yindu Kitchen
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Yindu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor 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 Shanghai V-Test 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 Shanghai V Test Semiconductor 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 Shanghai V-Test i.e., Shanghai V-Test and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Shanghai V-Test and Yindu Kitchen
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 1.8 times more return on investment than Yindu Kitchen. However, Shanghai V-Test is 1.8 times more volatile than Yindu Kitchen Equipment. It trades about 0.33 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.3 per unit of risk. If you would invest 5,607 in Shanghai V Test Semiconductor on November 6, 2024 and sell it today you would earn a total of 1,483 from holding Shanghai V Test Semiconductor or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Shanghai V Test |
| Yindu Kitchen Equipment |
Shanghai V-Test and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V-Test and Yindu Kitchen
The main advantage of trading using opposite Shanghai V-Test and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V-Test 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.| Shanghai V-Test vs. Qtone Education Group | Shanghai V-Test vs. Jinsanjiang Silicon Material | Shanghai V-Test vs. Tsingtao Brewery Co | Shanghai V-Test vs. Jiangsu Yanghe Brewery |
| Yindu Kitchen vs. Luyin Investment Group | Yindu Kitchen vs. Chengdu Xingrong Investment | Yindu Kitchen vs. Metro Investment Development | Yindu Kitchen vs. Tieling Newcity Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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