Correlation Between Youyou Foods Co and Wuhan Yangtze
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By analyzing existing cross correlation between Youyou Foods Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Youyou Foods Co and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and Wuhan Yangtze.
Diversification Opportunities for Youyou Foods Co and Wuhan Yangtze
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youyou and Wuhan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Youyou Foods Co and Wuhan Yangtze
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.73 times less return on investment than Wuhan Yangtze. But when comparing it to its historical volatility, Youyou Foods Co is 1.49 times less risky than Wuhan Yangtze. It trades about 0.26 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,930 in Wuhan Yangtze Communication on August 31, 2024 and sell it today you would earn a total of 919.00 from holding Wuhan Yangtze Communication or generate 47.62% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Youyou Foods Co |
| Wuhan Yangtze Commun |
Youyou Foods Co and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and Wuhan Yangtze
The main advantage of trading using opposite Youyou Foods Co and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Kweichow Moutai Co | Wuhan Yangtze vs. NAURA Technology Group | Wuhan Yangtze vs. APT Medical | Wuhan Yangtze 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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