Correlation Between China Construction and Youyou Foods
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By analyzing existing cross correlation between China Construction Bank and Youyou Foods Co, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Youyou Foods.
Diversification Opportunities for China Construction and Youyou Foods
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Youyou is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and China 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 China Construction Bank 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 China Construction i.e., China Construction and Youyou Foods go up and down completely randomly.
Pair Corralation between China Construction and Youyou Foods
Assuming the 90 days trading horizon China Construction is expected to generate 3.98 times less return on investment than Youyou Foods. But when comparing it to its historical volatility, China Construction Bank is 1.92 times less risky than Youyou Foods. It trades about 0.07 of its potential returns per unit of risk. Youyou Foods Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 649.00 in Youyou Foods Co on August 30, 2024 and sell it today you would earn a total of 445.00 from holding Youyou Foods Co or generate 68.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Youyou Foods Co
Performance |
| Timeline |
| China Construction Bank |
| Youyou Foods |
China Construction and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Youyou Foods
The main advantage of trading using opposite China Construction and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Kweichow Moutai Co | China Construction vs. Shenzhen Mindray Bio Medical | China Construction vs. Jiangsu Pacific Quartz | China Construction vs. G bits Network Technology |
| Youyou Foods vs. Industrial and Commercial | Youyou Foods vs. China Construction Bank | Youyou Foods vs. Agricultural Bank of | Youyou Foods vs. Bank of China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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