Correlation Between Youyou Foods and Smartgiant Technology
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By analyzing existing cross correlation between Youyou Foods Co and Smartgiant Technology Co, you can compare the effects of market volatilities on Youyou Foods and Smartgiant Technology 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 Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Smartgiant Technology.
Diversification Opportunities for Youyou Foods and Smartgiant Technology
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Youyou and Smartgiant is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology 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 Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Youyou Foods i.e., Youyou Foods and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Youyou Foods and Smartgiant Technology
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.86 times more return on investment than Smartgiant Technology. However, Youyou Foods Co is 1.16 times less risky than Smartgiant Technology. It trades about -0.06 of its potential returns per unit of risk. Smartgiant Technology Co is currently generating about -0.11 per unit of risk. If you would invest 1,082 in Youyou Foods Co on October 28, 2024 and sell it today you would lose (85.00) from holding Youyou Foods Co or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Smartgiant Technology Co
Performance |
| Timeline |
| Youyou Foods |
| Smartgiant Technology |
Youyou Foods and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Smartgiant Technology
The main advantage of trading using opposite Youyou Foods and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Youyou Foods vs. Ningbo Construction Co | Youyou Foods vs. Offshore Oil Engineering | Youyou Foods vs. Anhui Huilong Agricultural | Youyou Foods vs. Yuanjie Semiconductor Technology |
| Smartgiant Technology vs. V V Food | Smartgiant Technology vs. Jiajia Food Group | Smartgiant Technology vs. Omnijoi Media Corp | Smartgiant Technology vs. Shanghai Xinhua Media |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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