Correlation Between Qingdao Foods and Youyou Foods
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By analyzing existing cross correlation between Qingdao Foods Co and Youyou Foods Co, you can compare the effects of market volatilities on Qingdao Foods 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 Qingdao Foods with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Youyou Foods.
Diversification Opportunities for Qingdao Foods and Youyou Foods
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Youyou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods 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 Qingdao Foods 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 Qingdao Foods 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 Qingdao Foods i.e., Qingdao Foods and Youyou Foods go up and down completely randomly.
Pair Corralation between Qingdao Foods and Youyou Foods
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 1.66 times less return on investment than Youyou Foods. But when comparing it to its historical volatility, Qingdao Foods Co is 1.37 times less risky than Youyou Foods. It trades about 0.13 of its potential returns per unit of risk. Youyou Foods Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Youyou Foods Co on September 5, 2024 and sell it today you would earn a total of 142.00 from holding Youyou Foods Co or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Youyou Foods Co
Performance |
| Timeline |
| Qingdao Foods |
| Youyou Foods |
Qingdao Foods and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Youyou Foods
The main advantage of trading using opposite Qingdao Foods and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods 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.| Qingdao Foods vs. Gem Year Industrial Co | Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Huaxia Fund Management | Qingdao Foods vs. Qinghaihuading Industrial Co |
| Youyou Foods vs. Poly Real Estate | Youyou Foods vs. China Vanke Co | Youyou Foods vs. China Merchants Shekou | Youyou Foods vs. Huafa Industrial Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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