Correlation Between Youyou Foods Co and China International
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By analyzing existing cross correlation between Youyou Foods Co and China International Capital, you can compare the effects of market volatilities on Youyou Foods Co and China International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and China International.
Diversification Opportunities for Youyou Foods Co and China International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and China International go up and down completely randomly.
Pair Corralation between Youyou Foods Co and China International
Assuming the 90 days trading horizon Youyou Foods Co is expected to under-perform the China International. In addition to that, Youyou Foods Co is 1.58 times more volatile than China International Capital. It trades about -0.31 of its total potential returns per unit of risk. China International Capital is currently generating about 0.36 per unit of volatility. If you would invest 3,118 in China International Capital on November 27, 2024 and sell it today you would earn a total of 250.00 from holding China International Capital or generate 8.02% 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. China International Capital
Performance |
| Timeline |
| Youyou Foods Co |
| China International |
Youyou Foods Co and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and China International
The main advantage of trading using opposite Youyou Foods Co and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, China International 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 International will offset losses from the drop in China International's long position.| Youyou Foods Co vs. Kweichow Moutai Co | Youyou Foods Co vs. Wuliangye Yibin Co | Youyou Foods Co vs. Shenzhen Mindray Bio Medical | Youyou Foods Co vs. G bits Network Technology |
| China International vs. Keeson Technology Corp | China International vs. Beijing Mainstreets Investment | China International vs. Hubei Geoway Investment | China International vs. Chengdu Xingrong Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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