Correlation Between Youyou Foods Co and Tongyu Communication
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By analyzing existing cross correlation between Youyou Foods Co and Tongyu Communication, you can compare the effects of market volatilities on Youyou Foods Co and Tongyu Communication 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 Co with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and Tongyu Communication.
Diversification Opportunities for Youyou Foods Co and Tongyu Communication
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youyou and Tongyu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Youyou Foods Co 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and Tongyu Communication go up and down completely randomly.
Pair Corralation between Youyou Foods Co and Tongyu Communication
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.82 times more return on investment than Tongyu Communication. However, Youyou Foods Co is 1.22 times less risky than Tongyu Communication. It trades about 0.26 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.21 per unit of risk. If you would invest 868.00 in Youyou Foods Co on August 31, 2024 and sell it today you would earn a total of 226.00 from holding Youyou Foods Co or generate 26.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Tongyu Communication
Performance |
| Timeline |
| Youyou Foods Co |
| Tongyu Communication |
Youyou Foods Co and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and Tongyu Communication
The main advantage of trading using opposite Youyou Foods Co and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Youyou Foods Co vs. Lutian Machinery Co | Youyou Foods Co vs. PetroChina Co Ltd | Youyou Foods Co vs. Bank of China | Youyou Foods Co vs. Gansu Jiu Steel |
| Tongyu Communication vs. Kweichow Moutai Co | Tongyu Communication vs. NAURA Technology Group | Tongyu Communication vs. APT Medical | Tongyu Communication vs. Contemporary Amperex Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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