Correlation Between Qingdao Haier and Youyou Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Qingdao Haier Biomedical and Youyou Foods Co, you can compare the effects of market volatilities on Qingdao Haier and Youyou Foods 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 Qingdao Haier with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Youyou Foods.
Diversification Opportunities for Qingdao Haier and Youyou Foods
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Youyou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Qingdao Haier 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 Qingdao Haier Biomedical are associated (or correlated) with Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Youyou Foods go up and down completely randomly.
Pair Corralation between Qingdao Haier and Youyou Foods
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Youyou Foods. In addition to that, Qingdao Haier is 1.09 times more volatile than Youyou Foods Co. It trades about -0.02 of its total potential returns per unit of risk. Youyou Foods Co is currently generating about 0.03 per unit of volatility. If you would invest 861.00 in Youyou Foods Co on September 14, 2024 and sell it today you would earn a total of 264.00 from holding Youyou Foods Co or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Youyou Foods Co
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Youyou Foods |
Qingdao Haier and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Youyou Foods
The main advantage of trading using opposite Qingdao Haier and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Youyou Foods 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.| Qingdao Haier vs. Northern United Publishing | Qingdao Haier vs. Shandong Publishing Media | Qingdao Haier vs. China Express Airlines | Qingdao Haier vs. Juneyao Airlines |
| Youyou Foods vs. Nanjing Putian Telecommunications | Youyou Foods vs. Tianjin Realty Development | Youyou Foods vs. Kangyue Technology Co | Youyou Foods vs. Shenzhen Hifuture Electric |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |