Correlation Between Zhongtong Guomai and Youyou Foods
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Youyou Foods Co, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Youyou Foods.
Diversification Opportunities for Zhongtong Guomai and Youyou Foods
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongtong and Youyou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Youyou Foods go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Youyou Foods
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Zhongtong Guomai Communication is 1.07 times less risky than Youyou Foods. The stock trades about -0.03 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Youyou Foods Co on September 4, 2024 and sell it today you would earn a total of 150.00 from holding Youyou Foods Co or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Youyou Foods Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Youyou Foods |
Zhongtong Guomai and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Youyou Foods
The main advantage of trading using opposite Zhongtong Guomai and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Wuhan Xianglong Power | Zhongtong Guomai vs. Yuanjie Semiconductor Technology | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Yunnan Bowin Technology |
| Youyou Foods vs. Poly Real Estate | Youyou Foods vs. China Vanke Co | Youyou Foods vs. China Merchants Shekou | Youyou Foods vs. Huafa Industrial Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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