Correlation Between Zotye Automobile and Youyou Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zotye Automobile Co and Youyou Foods Co, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Youyou Foods.
Diversification Opportunities for Zotye Automobile and Youyou Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Youyou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Zotye Automobile 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 Zotye Automobile Co 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 Zotye Automobile i.e., Zotye Automobile and Youyou Foods go up and down completely randomly.
Pair Corralation between Zotye Automobile and Youyou Foods
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Youyou Foods. In addition to that, Zotye Automobile is 1.46 times more volatile than Youyou Foods Co. It trades about -0.03 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 823.00 in Youyou Foods Co on August 27, 2024 and sell it today you would earn a total of 144.00 from holding Youyou Foods Co or generate 17.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Youyou Foods Co
Performance |
| Timeline |
| Zotye Automobile |
| Youyou Foods |
Zotye Automobile and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Youyou Foods
The main advantage of trading using opposite Zotye Automobile and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. Youyou Foods Co | Zotye Automobile vs. Sunwave Communications Co | Zotye Automobile vs. New Hope Dairy | Zotye Automobile vs. Suzhou Weizhixiang Food |
| Youyou Foods vs. China Petroleum Chemical | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. China State Construction | Youyou Foods vs. China Railway Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |