Correlation Between Youyou Foods and Der International
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By analyzing existing cross correlation between Youyou Foods Co and Der International Home, you can compare the effects of market volatilities on Youyou Foods and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Der International.
Diversification Opportunities for Youyou Foods and Der International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Youyou and Der is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Youyou Foods i.e., Youyou Foods and Der International go up and down completely randomly.
Pair Corralation between Youyou Foods and Der International
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.92 times more return on investment than Der International. However, Youyou Foods Co is 1.08 times less risky than Der International. It trades about 0.14 of its potential returns per unit of risk. Der International Home is currently generating about 0.07 per unit of risk. If you would invest 564.00 in Youyou Foods Co on January 7, 2025 and sell it today you would earn a total of 415.00 from holding Youyou Foods Co or generate 73.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.27% |
| Values | Daily Returns |
Youyou Foods Co vs. Der International Home
Performance |
| Timeline |
| Youyou Foods |
| Der International Home |
Youyou Foods and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Der International
The main advantage of trading using opposite Youyou Foods and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Youyou Foods vs. Inner Mongolia Xingye | Youyou Foods vs. Tibet Huayu Mining | Youyou Foods vs. Tongyu Communication | Youyou Foods vs. Nanjing Putian Telecommunications |
| Der International vs. Glodon Software Co | Der International vs. Harvest Power China | Der International vs. Jiamei Food Packaging | Der International vs. China National Software |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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