Correlation Between Changchun BCHT and Youyou Foods
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Youyou Foods Co, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Youyou Foods.
Diversification Opportunities for Changchun BCHT and Youyou Foods
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Youyou is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and Youyou Foods go up and down completely randomly.
Pair Corralation between Changchun BCHT and Youyou Foods
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.92 times less risky than Youyou Foods. The stock trades about -0.19 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 656.00 in Youyou Foods Co on August 25, 2024 and sell it today you would earn a total of 311.00 from holding Youyou Foods Co or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Youyou Foods Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| Youyou Foods |
Changchun BCHT and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Youyou Foods
The main advantage of trading using opposite Changchun BCHT and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Youyou Foods Co | Changchun BCHT vs. Changjiang Jinggong Steel | Changchun BCHT vs. Gan Yuan Foods | Changchun BCHT vs. Sichuan Teway Food |
| Youyou Foods vs. Guosheng Financial Holding | Youyou Foods vs. Ping An Insurance | Youyou Foods vs. GRG Banking Equipment | Youyou Foods vs. Agricultural Bank of |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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