Correlation Between Youyou Foods and ZheJiang BangJie
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By analyzing existing cross correlation between Youyou Foods Co and ZheJiang BangJie Digital, you can compare the effects of market volatilities on Youyou Foods and ZheJiang BangJie 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 ZheJiang BangJie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and ZheJiang BangJie.
Diversification Opportunities for Youyou Foods and ZheJiang BangJie
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and ZheJiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and ZheJiang BangJie Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZheJiang BangJie Digital 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 ZheJiang BangJie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZheJiang BangJie Digital has no effect on the direction of Youyou Foods i.e., Youyou Foods and ZheJiang BangJie go up and down completely randomly.
Pair Corralation between Youyou Foods and ZheJiang BangJie
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.86 times more return on investment than ZheJiang BangJie. However, Youyou Foods Co is 1.16 times less risky than ZheJiang BangJie. It trades about 0.04 of its potential returns per unit of risk. ZheJiang BangJie Digital is currently generating about -0.03 per unit of risk. If you would invest 900.00 in Youyou Foods Co on September 12, 2024 and sell it today you would earn a total of 207.00 from holding Youyou Foods Co or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. ZheJiang BangJie Digital
Performance |
| Timeline |
| Youyou Foods |
| ZheJiang BangJie Digital |
Youyou Foods and ZheJiang BangJie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and ZheJiang BangJie
The main advantage of trading using opposite Youyou Foods and ZheJiang BangJie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, ZheJiang BangJie 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 ZheJiang BangJie will offset losses from the drop in ZheJiang BangJie's long position.| Youyou Foods vs. China Petroleum Chemical | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. China State Construction | Youyou Foods vs. China Railway Group |
| ZheJiang BangJie vs. Shenwu Energy Saving | ZheJiang BangJie vs. Peoples Insurance of | ZheJiang BangJie vs. Guosheng Financial Holding | ZheJiang BangJie vs. Youyou Foods 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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