Correlation Between Eastern Communications and Yindu Kitchen
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By analyzing existing cross correlation between Eastern Communications Co and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Yindu Kitchen.
Diversification Opportunities for Eastern Communications and Yindu Kitchen
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastern and Yindu is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Eastern Communications and Yindu Kitchen
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 1.6 times more return on investment than Yindu Kitchen. However, Eastern Communications is 1.6 times more volatile than Yindu Kitchen Equipment. It trades about 0.06 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.08 per unit of risk. If you would invest 41.00 in Eastern Communications Co on September 25, 2024 and sell it today you would earn a total of 1.00 from holding Eastern Communications Co or generate 2.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Eastern Communications Co vs. Yindu Kitchen Equipment
Performance |
Timeline |
Eastern Communications |
Yindu Kitchen Equipment |
Eastern Communications and Yindu Kitchen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastern Communications and Yindu Kitchen
The main advantage of trading using opposite Eastern Communications and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.Eastern Communications vs. Yindu Kitchen Equipment | Eastern Communications vs. Songz Automobile Air | Eastern Communications vs. Changchun Faway Automobile | Eastern Communications vs. Dongfeng Automobile Co |
Yindu Kitchen vs. Bank of China | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. PetroChina Co Ltd | Yindu Kitchen vs. Bank of Communications |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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