Correlation Between Youyou Foods and Highbroad Advanced
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By analyzing existing cross correlation between Youyou Foods Co and Highbroad Advanced Material, you can compare the effects of market volatilities on Youyou Foods and Highbroad Advanced 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 Highbroad Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Highbroad Advanced.
Diversification Opportunities for Youyou Foods and Highbroad Advanced
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youyou and Highbroad is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Highbroad Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highbroad Advanced 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 Highbroad Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highbroad Advanced has no effect on the direction of Youyou Foods i.e., Youyou Foods and Highbroad Advanced go up and down completely randomly.
Pair Corralation between Youyou Foods and Highbroad Advanced
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.79 times more return on investment than Highbroad Advanced. However, Youyou Foods Co is 1.26 times less risky than Highbroad Advanced. It trades about -0.09 of its potential returns per unit of risk. Highbroad Advanced Material is currently generating about -0.19 per unit of risk. If you would invest 1,047 in Youyou Foods Co on October 25, 2024 and sell it today you would lose (54.00) from holding Youyou Foods Co or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Highbroad Advanced Material
Performance |
| Timeline |
| Youyou Foods |
| Highbroad Advanced |
Youyou Foods and Highbroad Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Highbroad Advanced
The main advantage of trading using opposite Youyou Foods and Highbroad Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Highbroad Advanced 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 Highbroad Advanced will offset losses from the drop in Highbroad Advanced's long position.| Youyou Foods vs. Agricultural Bank of | Youyou Foods vs. Postal Savings Bank | Youyou Foods vs. Bank of Communications | Youyou Foods vs. China Merchants Bank |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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