Correlation Between Youyou Foods and Jinzhou Port
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By analyzing existing cross correlation between Youyou Foods Co and Jinzhou Port Co, you can compare the effects of market volatilities on Youyou Foods and Jinzhou Port 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 Jinzhou Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Jinzhou Port.
Diversification Opportunities for Youyou Foods and Jinzhou Port
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youyou and Jinzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Jinzhou Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzhou Port 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 Jinzhou Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzhou Port has no effect on the direction of Youyou Foods i.e., Youyou Foods and Jinzhou Port go up and down completely randomly.
Pair Corralation between Youyou Foods and Jinzhou Port
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.01 times more return on investment than Jinzhou Port. However, Youyou Foods is 1.01 times more volatile than Jinzhou Port Co. It trades about 0.04 of its potential returns per unit of risk. Jinzhou Port Co is currently generating about -0.04 per unit of risk. If you would invest 915.00 in Youyou Foods Co on September 14, 2024 and sell it today you would earn a total of 210.00 from holding Youyou Foods Co or generate 22.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Jinzhou Port Co
Performance |
| Timeline |
| Youyou Foods |
| Jinzhou Port |
Youyou Foods and Jinzhou Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Jinzhou Port
The main advantage of trading using opposite Youyou Foods and Jinzhou Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Jinzhou Port 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 Jinzhou Port will offset losses from the drop in Jinzhou Port's long position.| Youyou Foods vs. Nanjing Putian Telecommunications | Youyou Foods vs. Tianjin Realty Development | Youyou Foods vs. Kangyue Technology Co | Youyou Foods vs. Shenzhen Hifuture Electric |
| Jinzhou Port vs. Industrial and Commercial | Jinzhou Port vs. Agricultural Bank of | Jinzhou Port vs. China Construction Bank | Jinzhou Port vs. Bank of China |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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