Correlation Between Youyou Foods and Guangxi Wuzhou
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By analyzing existing cross correlation between Youyou Foods Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Youyou Foods and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Guangxi Wuzhou.
Diversification Opportunities for Youyou Foods and Guangxi Wuzhou
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Guangxi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Youyou Foods i.e., Youyou Foods and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Youyou Foods and Guangxi Wuzhou
Assuming the 90 days trading horizon Youyou Foods Co is expected to under-perform the Guangxi Wuzhou. But the stock apears to be less risky and, when comparing its historical volatility, Youyou Foods Co is 1.34 times less risky than Guangxi Wuzhou. The stock trades about -0.02 of its potential returns per unit of risk. The Guangxi Wuzhou Communications is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Guangxi Wuzhou Communications on October 16, 2024 and sell it today you would earn a total of 85.00 from holding Guangxi Wuzhou Communications or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Youyou Foods |
| Guangxi Wuzhou Commu |
Youyou Foods and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Guangxi Wuzhou
The main advantage of trading using opposite Youyou Foods and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Youyou Foods vs. Gem Year Industrial Co | Youyou Foods vs. Qingdao Choho Industrial | Youyou Foods vs. Bosera CMSK Industrial | Youyou Foods vs. Guangdong Wens Foodstuff |
| Guangxi Wuzhou vs. Jonjee Hi tech Industrial | Guangxi Wuzhou vs. Youyou Foods Co | Guangxi Wuzhou vs. Guangzhou Haige Communications | Guangxi Wuzhou vs. Beijing Sanyuan Foods |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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