Correlation Between Shanghai Yanpu and Yindu Kitchen
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Shanghai Yanpu 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 Yanpu with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Yindu Kitchen.
Diversification Opportunities for Shanghai Yanpu and Yindu Kitchen
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Yindu is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu 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 Shanghai Yanpu 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 Yanpu 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 Shanghai Yanpu i.e., Shanghai Yanpu and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Yindu Kitchen
Assuming the 90 days trading horizon Shanghai Yanpu is expected to generate 3.21 times less return on investment than Yindu Kitchen. In addition to that, Shanghai Yanpu is 1.76 times more volatile than Yindu Kitchen Equipment. It trades about 0.03 of its total potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.14 per unit of volatility. 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 |
Shanghai Yanpu Metal vs. Yindu Kitchen Equipment
Performance |
Timeline |
Shanghai Yanpu Metal |
Yindu Kitchen Equipment |
Shanghai Yanpu and Yindu Kitchen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and Yindu Kitchen
The main advantage of trading using opposite Shanghai Yanpu and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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 Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
Yindu Kitchen vs. Nanxing Furniture Machinery | Yindu Kitchen vs. Sportsoul Co Ltd | Yindu Kitchen vs. Shantui Construction Machinery | Yindu Kitchen vs. Dazhong Transportation Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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