Correlation Between Youyou Foods and Jiajia Food
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By analyzing existing cross correlation between Youyou Foods Co and Jiajia Food Group, you can compare the effects of market volatilities on Youyou Foods and Jiajia Food 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 Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Jiajia Food.
Diversification Opportunities for Youyou Foods and Jiajia Food
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youyou and Jiajia is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group 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 Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Youyou Foods i.e., Youyou Foods and Jiajia Food go up and down completely randomly.
Pair Corralation between Youyou Foods and Jiajia Food
Assuming the 90 days trading horizon Youyou Foods is expected to generate 1.0 times less return on investment than Jiajia Food. In addition to that, Youyou Foods is 1.01 times more volatile than Jiajia Food Group. It trades about 0.29 of its total potential returns per unit of risk. Jiajia Food Group is currently generating about 0.29 per unit of volatility. If you would invest 215.00 in Jiajia Food Group on August 28, 2024 and sell it today you would earn a total of 182.00 from holding Jiajia Food Group or generate 84.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Jiajia Food Group
Performance |
| Timeline |
| Youyou Foods |
| Jiajia Food Group |
Youyou Foods and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Jiajia Food
The main advantage of trading using opposite Youyou Foods and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food'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 |
| Jiajia Food vs. China Petroleum Chemical | Jiajia Food vs. PetroChina Co Ltd | Jiajia Food vs. China State Construction | Jiajia Food vs. China Railway Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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