Correlation Between Youyou Foods and New Hope
Specify exactly 2 symbols:
By analyzing existing cross correlation between Youyou Foods Co and New Hope Dairy, you can compare the effects of market volatilities on Youyou Foods and New Hope 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 New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and New Hope.
Diversification Opportunities for Youyou Foods and New Hope
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and New is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Youyou Foods i.e., Youyou Foods and New Hope go up and down completely randomly.
Pair Corralation between Youyou Foods and New Hope
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.97 times more return on investment than New Hope. However, Youyou Foods is 1.97 times more volatile than New Hope Dairy. It trades about 0.28 of its potential returns per unit of risk. New Hope Dairy is currently generating about 0.01 per unit of risk. If you would invest 735.00 in Youyou Foods Co on August 27, 2024 and sell it today you would earn a total of 232.00 from holding Youyou Foods Co or generate 31.56% 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. New Hope Dairy
Performance |
| Timeline |
| Youyou Foods |
| New Hope Dairy |
Youyou Foods and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and New Hope
The main advantage of trading using opposite Youyou Foods and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope'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 |
| New Hope vs. China Petroleum Chemical | New Hope vs. PetroChina Co Ltd | New Hope vs. China State Construction | New Hope 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |