Correlation Between Youyou Foods and Nanjing Putian
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By analyzing existing cross correlation between Youyou Foods Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Youyou Foods and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Nanjing Putian.
Diversification Opportunities for Youyou Foods and Nanjing Putian
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Nanjing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Youyou Foods i.e., Youyou Foods and Nanjing Putian go up and down completely randomly.
Pair Corralation between Youyou Foods and Nanjing Putian
Assuming the 90 days trading horizon Youyou Foods Co is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Youyou Foods Co is 1.59 times less risky than Nanjing Putian. The stock trades about -0.07 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Nanjing Putian Telecommunications on October 20, 2024 and sell it today you would lose (12.00) from holding Nanjing Putian Telecommunications or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Youyou Foods |
| Nanjing Putian Telec |
Youyou Foods and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Nanjing Putian
The main advantage of trading using opposite Youyou Foods and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Youyou Foods vs. Hefei Metalforming Mach | Youyou Foods vs. China Minmetals Rare | Youyou Foods vs. Shandong Sinoglory Health | Youyou Foods vs. Ye Chiu Metal |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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