Correlation Between Great Sun and Youyou Foods
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By analyzing existing cross correlation between Great Sun Foods Co and Youyou Foods Co, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Youyou Foods.
Diversification Opportunities for Great Sun and Youyou Foods
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Youyou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun 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 and Great Sun 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 Great Sun Foods 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 Great Sun i.e., Great Sun and Youyou Foods go up and down completely randomly.
Pair Corralation between Great Sun and Youyou Foods
Assuming the 90 days trading horizon Great Sun is expected to generate 2.41 times less return on investment than Youyou Foods. But when comparing it to its historical volatility, Great Sun Foods Co is 1.07 times less risky than Youyou Foods. It trades about 0.08 of its potential returns per unit of risk. Youyou Foods Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Youyou Foods Co on September 4, 2024 and sell it today you would earn a total of 150.00 from holding Youyou Foods Co or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Youyou Foods Co
Performance |
| Timeline |
| Great Sun Foods |
| Youyou Foods |
Great Sun and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Youyou Foods
The main advantage of trading using opposite Great Sun and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Jilin Jlu Communication | Great Sun vs. State Grid InformationCommunication | Great Sun vs. Eastern Communications Co | Great Sun vs. Anhui Deli Household |
| Youyou Foods vs. Poly Real Estate | Youyou Foods vs. China Vanke Co | Youyou Foods vs. China Merchants Shekou | Youyou Foods vs. Huafa Industrial Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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