Correlation Between China Vanke and Youyou Foods
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By analyzing existing cross correlation between China Vanke Co and Youyou Foods Co, you can compare the effects of market volatilities on China Vanke and Youyou Foods 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 China Vanke with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Youyou Foods.
Diversification Opportunities for China Vanke and Youyou Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Youyou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and China Vanke 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 China Vanke Co are associated (or correlated) with Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of China Vanke i.e., China Vanke and Youyou Foods go up and down completely randomly.
Pair Corralation between China Vanke and Youyou Foods
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 2.62 times less risky than Youyou Foods. The stock trades about -0.23 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Youyou Foods Co on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Youyou Foods Co or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Vanke Co vs. Youyou Foods Co
Performance |
| Timeline |
| China Vanke |
| Youyou Foods |
China Vanke and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Youyou Foods
The main advantage of trading using opposite China Vanke and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Youyou Foods 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.| China Vanke vs. Sichuan Jinshi Technology | China Vanke vs. Xinjiang Communications Construction | China Vanke vs. Linewell Software Co | China Vanke vs. Tianjin Hi Tech Development |
| Youyou Foods vs. China Petroleum Chemical | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. China State Construction | Youyou Foods vs. China Railway 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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