Correlation Between HaiXin Foods and Youyou Foods Co
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By analyzing existing cross correlation between HaiXin Foods Co and Youyou Foods Co, you can compare the effects of market volatilities on HaiXin Foods and Youyou Foods Co 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 HaiXin Foods with a short position of Youyou Foods Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Youyou Foods Co.
Diversification Opportunities for HaiXin Foods and Youyou Foods Co
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HaiXin and Youyou is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods Co and HaiXin 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 HaiXin Foods Co are associated (or correlated) with Youyou Foods Co. 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 Co has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Youyou Foods Co go up and down completely randomly.
Pair Corralation between HaiXin Foods and Youyou Foods Co
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Youyou Foods Co. In addition to that, HaiXin Foods is 1.38 times more volatile than Youyou Foods Co. It trades about -0.26 of its total potential returns per unit of risk. Youyou Foods Co is currently generating about -0.15 per unit of volatility. If you would invest 1,049 in Youyou Foods Co on November 3, 2024 and sell it today you would lose (73.00) from holding Youyou Foods Co or give up 6.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Youyou Foods Co
Performance |
| Timeline |
| HaiXin Foods |
| Youyou Foods Co |
HaiXin Foods and Youyou Foods Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Youyou Foods Co
The main advantage of trading using opposite HaiXin Foods and Youyou Foods Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Youyou Foods Co 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 Co will offset losses from the drop in Youyou Foods Co's long position.| HaiXin Foods vs. Ingenic Semiconductor | HaiXin Foods vs. GRINM Semiconductor Materials | HaiXin Foods vs. Guangxi Wuzhou Communications | HaiXin Foods vs. Hua Hong Semiconductor |
| Youyou Foods Co vs. China Longyuan Power | Youyou Foods Co vs. PetroChina Co Ltd | Youyou Foods Co vs. Guangxi Guiguan Electric | Youyou Foods Co vs. Yantai North Andre |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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