Correlation Between Yindu Kitchen and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yindu Kitchen Equipment and Tibet Huayu Mining, you can compare the effects of market volatilities on Yindu Kitchen and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Tibet Huayu.
Diversification Opportunities for Yindu Kitchen and Tibet Huayu
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yindu and Tibet is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Tibet Huayu go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Tibet Huayu
Assuming the 90 days trading horizon Yindu Kitchen Equipment is expected to generate 0.51 times more return on investment than Tibet Huayu. However, Yindu Kitchen Equipment is 1.98 times less risky than Tibet Huayu. It trades about 0.14 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.01 per unit of risk. If you would invest 2,343 in Yindu Kitchen Equipment on September 26, 2024 and sell it today you would earn a total of 92.00 from holding Yindu Kitchen Equipment or generate 3.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Yindu Kitchen Equipment vs. Tibet Huayu Mining
Performance |
Timeline |
Yindu Kitchen Equipment |
Tibet Huayu Mining |
Yindu Kitchen and Tibet Huayu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yindu Kitchen and Tibet Huayu
The main advantage of trading using opposite Yindu Kitchen and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.Yindu Kitchen vs. Nanxing Furniture Machinery | Yindu Kitchen vs. Sportsoul Co Ltd | Yindu Kitchen vs. Shantui Construction Machinery | Yindu Kitchen vs. Dazhong Transportation Group |
Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |