Correlation Between Youyou Foods and Jiangxi Hengda
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By analyzing existing cross correlation between Youyou Foods Co and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Youyou Foods and Jiangxi Hengda 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 Youyou Foods with a short position of Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Jiangxi Hengda.
Diversification Opportunities for Youyou Foods and Jiangxi Hengda
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Jiangxi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi and Youyou 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 Youyou Foods Co are associated (or correlated) with Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Youyou Foods i.e., Youyou Foods and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Youyou Foods and Jiangxi Hengda
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.57 times more return on investment than Jiangxi Hengda. However, Youyou Foods Co is 1.75 times less risky than Jiangxi Hengda. It trades about -0.04 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.34 per unit of risk. If you would invest 1,058 in Youyou Foods Co on October 15, 2024 and sell it today you would lose (28.00) from holding Youyou Foods Co or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Youyou Foods |
| Jiangxi Hengda Hi |
Youyou Foods and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Jiangxi Hengda
The main advantage of trading using opposite Youyou Foods and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Youyou Foods vs. Shengda Mining Co | Youyou Foods vs. Hainan Mining Co | Youyou Foods vs. Jiangxi Naipu Mining | Youyou Foods vs. Shenyang Blue Silver |
| Jiangxi Hengda vs. Spring Airlines Co | Jiangxi Hengda vs. Juneyao Airlines | Jiangxi Hengda vs. Youyou Foods Co | Jiangxi Hengda vs. Guilin Seamild Foods |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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