Correlation Between Yindu Kitchen and Shanghai Jinfeng
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By analyzing existing cross correlation between Yindu Kitchen Equipment and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Yindu Kitchen and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yindu Kitchen and Shanghai Jinfeng.
Diversification Opportunities for Yindu Kitchen and Shanghai Jinfeng
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yindu and Shanghai is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yindu Kitchen Equipment and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Yindu Kitchen i.e., Yindu Kitchen and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Yindu Kitchen and Shanghai Jinfeng
Assuming the 90 days trading horizon Yindu Kitchen is expected to generate 19.74 times less return on investment than Shanghai Jinfeng. But when comparing it to its historical volatility, Yindu Kitchen Equipment is 1.3 times less risky than Shanghai Jinfeng. It trades about 0.02 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Shanghai Jinfeng Wine on September 13, 2024 and sell it today you would earn a total of 222.00 from holding Shanghai Jinfeng Wine or generate 50.57% 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. Shanghai Jinfeng Wine
Performance |
Timeline |
Yindu Kitchen Equipment |
Shanghai Jinfeng Wine |
Yindu Kitchen and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yindu Kitchen and Shanghai Jinfeng
The main advantage of trading using opposite Yindu Kitchen and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yindu Kitchen position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.Yindu Kitchen vs. Shaanxi Energy Investment | Yindu Kitchen vs. Fujian Rongji Software | Yindu Kitchen vs. Beijing Mainstreets Investment | Yindu Kitchen vs. Xizi Clean Energy |
Shanghai Jinfeng vs. Eastern Communications Co | Shanghai Jinfeng vs. Hubeiyichang Transportation Group | Shanghai Jinfeng vs. Sportsoul Co Ltd | Shanghai Jinfeng vs. Guangzhou Haige 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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