Correlation Between SUNSEA Telecommunicatio and Youyou Foods Co
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Youyou Foods Co, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Youyou Foods Co 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 SUNSEA Telecommunicatio with a short position of Youyou Foods Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Youyou Foods Co.
Diversification Opportunities for SUNSEA Telecommunicatio and Youyou Foods Co
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SUNSEA and Youyou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods Co and SUNSEA Telecommunicatio 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 SUNSEA Telecommunications Co are associated (or correlated) with Youyou Foods Co. 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 Co has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Youyou Foods Co go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Youyou Foods Co
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to under-perform the Youyou Foods Co. But the stock apears to be less risky and, when comparing its historical volatility, SUNSEA Telecommunications Co is 1.32 times less risky than Youyou Foods Co. The stock trades about -0.15 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Youyou Foods Co on August 31, 2024 and sell it today you would earn a total of 226.00 from holding Youyou Foods Co or generate 26.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Youyou Foods Co
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Youyou Foods Co |
SUNSEA Telecommunicatio and Youyou Foods Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Youyou Foods Co
The main advantage of trading using opposite SUNSEA Telecommunicatio and Youyou Foods Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Youyou Foods Co 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 Co will offset losses from the drop in Youyou Foods Co's long position.| SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. NAURA Technology Group | SUNSEA Telecommunicatio vs. APT Medical | SUNSEA Telecommunicatio vs. Contemporary Amperex Technology |
| Youyou Foods Co vs. Lutian Machinery Co | Youyou Foods Co vs. PetroChina Co Ltd | Youyou Foods Co vs. Bank of China | Youyou Foods Co vs. Gansu Jiu Steel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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