Correlation Between Chongqing Brewery and Youngy Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Youngy Health Co, you can compare the effects of market volatilities on Chongqing Brewery and Youngy Health 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 Chongqing Brewery with a short position of Youngy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Youngy Health.
Diversification Opportunities for Chongqing Brewery and Youngy Health
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Youngy is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Youngy Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngy Health and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with Youngy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngy Health has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Youngy Health go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Youngy Health
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Youngy Health. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.68 times less risky than Youngy Health. The stock trades about -0.3 of its potential returns per unit of risk. The Youngy Health Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Youngy Health Co on November 8, 2024 and sell it today you would earn a total of 21.00 from holding Youngy Health Co or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Youngy Health Co
Performance |
| Timeline |
| Chongqing Brewery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Youngy Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chongqing Brewery and Youngy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Youngy Health
The main advantage of trading using opposite Chongqing Brewery and Youngy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Youngy Health 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 Youngy Health will offset losses from the drop in Youngy Health's long position.The idea behind Chongqing Brewery Co and Youngy Health Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |