Correlation Between Youyou Foods Co and China Construction
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By analyzing existing cross correlation between Youyou Foods Co and China Construction Bank, you can compare the effects of market volatilities on Youyou Foods Co and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and China Construction.
Diversification Opportunities for Youyou Foods Co and China Construction
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Youyou and China is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and China Construction go up and down completely randomly.
Pair Corralation between Youyou Foods Co and China Construction
Assuming the 90 days trading horizon Youyou Foods Co is expected to under-perform the China Construction. In addition to that, Youyou Foods Co is 1.44 times more volatile than China Construction Bank. It trades about -0.02 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.13 per unit of volatility. If you would invest 829.00 in China Construction Bank on November 6, 2024 and sell it today you would earn a total of 25.00 from holding China Construction Bank or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. China Construction Bank
Performance |
| Timeline |
| Youyou Foods Co |
| China Construction Bank |
Youyou Foods Co and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and China Construction
The main advantage of trading using opposite Youyou Foods Co and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| Youyou Foods Co vs. Hygon Information Technology | Youyou Foods Co vs. CSSC Offshore Marine | Youyou Foods Co vs. Qingdao Choho Industrial | Youyou Foods Co vs. Bosera CMSK Industrial |
| China Construction vs. Nantong JiangTian Chemical | China Construction vs. Soyea Technology Co | China Construction vs. Hubei Forbon Technology | China Construction vs. Xilong Chemical 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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