Correlation Between Sichuan Teway and Yankershop Food
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By analyzing existing cross correlation between Sichuan Teway Food and Yankershop Food Co, you can compare the effects of market volatilities on Sichuan Teway and Yankershop Food 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 Sichuan Teway with a short position of Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Yankershop Food.
Diversification Opportunities for Sichuan Teway and Yankershop Food
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Yankershop is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Yankershop Food go up and down completely randomly.
Pair Corralation between Sichuan Teway and Yankershop Food
Assuming the 90 days trading horizon Sichuan Teway Food is expected to generate 1.18 times more return on investment than Yankershop Food. However, Sichuan Teway is 1.18 times more volatile than Yankershop Food Co. It trades about 0.18 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.2 per unit of risk. If you would invest 968.00 in Sichuan Teway Food on August 28, 2024 and sell it today you would earn a total of 389.00 from holding Sichuan Teway Food or generate 40.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Yankershop Food Co
Performance |
| Timeline |
| Sichuan Teway Food |
| Yankershop Food |
Sichuan Teway and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Yankershop Food
The main advantage of trading using opposite Sichuan Teway and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Sichuan Teway vs. China Petroleum Chemical | Sichuan Teway vs. PetroChina Co Ltd | Sichuan Teway vs. China State Construction | Sichuan Teway vs. China Railway Group |
| Yankershop Food vs. China Petroleum Chemical | Yankershop Food vs. PetroChina Co Ltd | Yankershop Food vs. China State Construction | Yankershop Food vs. China Railway Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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