Correlation Between Youyou Foods Co and Inner Mongolia
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By analyzing existing cross correlation between Youyou Foods Co and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Youyou Foods Co and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and Inner Mongolia.
Diversification Opportunities for Youyou Foods Co and Inner Mongolia
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Inner is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and Inner Mongolia go up and down completely randomly.
Pair Corralation between Youyou Foods Co and Inner Mongolia
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.73 times more return on investment than Inner Mongolia. However, Youyou Foods Co is 1.73 times more volatile than Inner Mongolia BaoTou. It trades about -0.02 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about -0.05 per unit of risk. If you would invest 985.00 in Youyou Foods Co on November 5, 2024 and sell it today you would lose (9.00) from holding Youyou Foods Co or give up 0.91% 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. Inner Mongolia BaoTou
Performance |
| Timeline |
| Youyou Foods Co |
| Inner Mongolia BaoTou |
Youyou Foods Co and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and Inner Mongolia
The main advantage of trading using opposite Youyou Foods Co and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Youyou Foods Co vs. China Longyuan Power | Youyou Foods Co vs. PetroChina Co Ltd | Youyou Foods Co vs. Guangxi Guiguan Electric | Youyou Foods Co vs. Yantai North Andre |
| Inner Mongolia vs. Chengdu Xingrong Investment | Inner Mongolia vs. Suzhou Weizhixiang Food | Inner Mongolia vs. Jiamei Food Packaging | Inner Mongolia vs. Jinhui Liquor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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