Correlation Between Ningbo Construction and Youyou Foods Co
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By analyzing existing cross correlation between Ningbo Construction Co and Youyou Foods Co, you can compare the effects of market volatilities on Ningbo Construction 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 Ningbo Construction with a short position of Youyou Foods Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Youyou Foods Co.
Diversification Opportunities for Ningbo Construction and Youyou Foods Co
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Youyou is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction 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 Ningbo Construction 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 Ningbo Construction 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 Ningbo Construction i.e., Ningbo Construction and Youyou Foods Co go up and down completely randomly.
Pair Corralation between Ningbo Construction and Youyou Foods Co
Assuming the 90 days trading horizon Ningbo Construction is expected to generate 7.11 times less return on investment than Youyou Foods Co. In addition to that, Ningbo Construction is 1.07 times more volatile than Youyou Foods Co. It trades about 0.01 of its total potential returns per unit of risk. Youyou Foods Co is currently generating about 0.05 per unit of volatility. If you would invest 914.00 in Youyou Foods Co on November 6, 2024 and sell it today you would earn a total of 62.00 from holding Youyou Foods Co or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Youyou Foods Co
Performance |
| Timeline |
| Ningbo Construction |
| Youyou Foods Co |
Ningbo Construction and Youyou Foods Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Youyou Foods Co
The main advantage of trading using opposite Ningbo Construction and Youyou Foods Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction 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.| Ningbo Construction vs. Qingdao Choho Industrial | Ningbo Construction vs. Pengxin International Mining | Ningbo Construction vs. Jilin Jlu Communication | Ningbo Construction vs. Eastern Communications Co |
| Youyou Foods Co vs. Hygon Information Technology | Youyou Foods Co vs. CSSC Offshore Marine | Youyou Foods Co vs. Qingdao Choho Industrial | Youyou Foods Co vs. Bosera CMSK Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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