Correlation Between Youyou Foods and Gan Yuan
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By analyzing existing cross correlation between Youyou Foods Co and Gan Yuan Foods, you can compare the effects of market volatilities on Youyou Foods and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Gan Yuan.
Diversification Opportunities for Youyou Foods and Gan Yuan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youyou and Gan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Youyou Foods i.e., Youyou Foods and Gan Yuan go up and down completely randomly.
Pair Corralation between Youyou Foods and Gan Yuan
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 2.01 times more return on investment than Gan Yuan. However, Youyou Foods is 2.01 times more volatile than Gan Yuan Foods. It trades about 0.16 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.09 per unit of risk. If you would invest 930.00 in Youyou Foods Co on September 5, 2024 and sell it today you would earn a total of 142.00 from holding Youyou Foods Co or generate 15.27% 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. Gan Yuan Foods
Performance |
| Timeline |
| Youyou Foods |
| Gan Yuan Foods |
Youyou Foods and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Gan Yuan
The main advantage of trading using opposite Youyou Foods and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Youyou Foods vs. Poly Real Estate | Youyou Foods vs. China Vanke Co | Youyou Foods vs. China Merchants Shekou | Youyou Foods vs. Huafa Industrial Co |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Suzhou Mingzhi Technology | Gan Yuan vs. Guangzhou Haige Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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