Correlation Between Youyou Foods and Tianjin Realty
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By analyzing existing cross correlation between Youyou Foods Co and Tianjin Realty Development, you can compare the effects of market volatilities on Youyou Foods and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Tianjin Realty.
Diversification Opportunities for Youyou Foods and Tianjin Realty
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Tianjin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Youyou Foods i.e., Youyou Foods and Tianjin Realty go up and down completely randomly.
Pair Corralation between Youyou Foods and Tianjin Realty
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.53 times more return on investment than Tianjin Realty. However, Youyou Foods Co is 1.88 times less risky than Tianjin Realty. It trades about -0.09 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.24 per unit of risk. If you would invest 1,023 in Youyou Foods Co on October 29, 2024 and sell it today you would lose (47.00) from holding Youyou Foods Co or give up 4.59% 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. Tianjin Realty Development
Performance |
| Timeline |
| Youyou Foods |
| Tianjin Realty Devel |
Youyou Foods and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Tianjin Realty
The main advantage of trading using opposite Youyou Foods and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Youyou Foods vs. Kweichow Moutai Co | Youyou Foods vs. Contemporary Amperex Technology | Youyou Foods vs. G bits Network Technology | Youyou Foods vs. Beijing Roborock Technology |
| Tianjin Realty vs. China Asset Management | Tianjin Realty vs. Zhejiang Construction Investment | Tianjin Realty vs. Postal Savings Bank | Tianjin Realty vs. Xiandai Investment 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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