Correlation Between Youyou Foods and Guangxi Guitang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Youyou Foods Co and Guangxi Guitang Group, you can compare the effects of market volatilities on Youyou Foods and Guangxi Guitang 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 Youyou Foods with a short position of Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Guangxi Guitang.
Diversification Opportunities for Youyou Foods and Guangxi Guitang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and Guangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group and Youyou Foods 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 Youyou Foods Co are associated (or correlated) with Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Youyou Foods i.e., Youyou Foods and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Youyou Foods and Guangxi Guitang
Assuming the 90 days trading horizon Youyou Foods is expected to generate 2.61 times less return on investment than Guangxi Guitang. But when comparing it to its historical volatility, Youyou Foods Co is 2.02 times less risky than Guangxi Guitang. It trades about 0.2 of its potential returns per unit of risk. Guangxi Guitang Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 953.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 450.00 from holding Guangxi Guitang Group or generate 47.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Youyou Foods Co vs. Guangxi Guitang Group
Performance |
| Timeline |
| Youyou Foods |
| Guangxi Guitang Group |
Youyou Foods and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Guangxi Guitang
The main advantage of trading using opposite Youyou Foods and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Youyou Foods vs. Nanjing Putian Telecommunications | Youyou Foods vs. Tianjin Realty Development | Youyou Foods vs. Kangyue Technology Co | Youyou Foods vs. Shenzhen Hifuture Electric |
| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |