Correlation Between Gem Year and Youyou Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gem Year Industrial Co and Youyou Foods Co, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Youyou Foods.
Diversification Opportunities for Gem Year and Youyou Foods
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Youyou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial 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 Gem Year 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 Gem Year Industrial 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 Gem Year i.e., Gem Year and Youyou Foods go up and down completely randomly.
Pair Corralation between Gem Year and Youyou Foods
Assuming the 90 days trading horizon Gem Year is expected to generate 6.39 times less return on investment than Youyou Foods. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.19 times less risky than Youyou Foods. It trades about 0.01 of its potential returns per unit of risk. Youyou Foods Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Youyou Foods Co on October 16, 2024 and sell it today you would earn a total of 172.00 from holding Youyou Foods Co or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Youyou Foods Co
Performance |
| Timeline |
| Gem Year Industrial |
| Youyou Foods |
Gem Year and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Youyou Foods
The main advantage of trading using opposite Gem Year and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Unisplendour Corp | Gem Year vs. Financial Street Holdings | Gem Year vs. Tongyu Communication | Gem Year vs. Ningbo Tech Bank Co |
| Youyou Foods vs. Gem Year Industrial Co | Youyou Foods vs. Qingdao Choho Industrial | Youyou Foods vs. Bosera CMSK Industrial | Youyou Foods vs. Guangdong Wens Foodstuff |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |