Correlation Between Kweichow Moutai and Youyou Foods
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By analyzing existing cross correlation between Kweichow Moutai Co and Youyou Foods Co, you can compare the effects of market volatilities on Kweichow Moutai 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 Kweichow Moutai with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Youyou Foods.
Diversification Opportunities for Kweichow Moutai and Youyou Foods
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and Youyou is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai 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 Kweichow Moutai 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 Kweichow Moutai 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 Kweichow Moutai i.e., Kweichow Moutai and Youyou Foods go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Youyou Foods
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 2.09 times less risky than Youyou Foods. The stock trades about -0.27 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Youyou Foods Co on October 28, 2024 and sell it today you would lose (21.00) from holding Youyou Foods Co or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Youyou Foods Co
Performance |
| Timeline |
| Kweichow Moutai |
| Youyou Foods |
Kweichow Moutai and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Youyou Foods
The main advantage of trading using opposite Kweichow Moutai and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai 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.| Kweichow Moutai vs. Zoje Resources Investment | Kweichow Moutai vs. China Asset Management | Kweichow Moutai vs. Harbin Hatou Investment | Kweichow Moutai vs. Xiandai Investment Co |
| Youyou Foods vs. Ningbo Construction Co | Youyou Foods vs. Offshore Oil Engineering | Youyou Foods vs. Anhui Huilong Agricultural | Youyou Foods vs. Yuanjie Semiconductor Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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