Correlation Between Youyou Foods and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Youyou Foods Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Youyou Foods and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Ningbo Fangzheng.
Diversification Opportunities for Youyou Foods and Ningbo Fangzheng
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youyou and Ningbo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Youyou Foods i.e., Youyou Foods and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Youyou Foods and Ningbo Fangzheng
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.39 times more return on investment than Ningbo Fangzheng. However, Youyou Foods is 1.39 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.18 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about 0.13 per unit of risk. If you would invest 930.00 in Youyou Foods Co on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Youyou Foods Co or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Youyou Foods |
| Ningbo Fangzheng Aut |
Youyou Foods and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Ningbo Fangzheng
The main advantage of trading using opposite Youyou Foods and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Youyou Foods vs. China Petroleum Chemical | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. China State Construction | Youyou Foods vs. China Railway Group |
| Ningbo Fangzheng vs. Lutian Machinery Co | Ningbo Fangzheng vs. PetroChina Co Ltd | Ningbo Fangzheng vs. Bank of China | Ningbo Fangzheng vs. Gansu Jiu Steel |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |