Correlation Between Youyou Foods Co and China Petroleum
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By analyzing existing cross correlation between Youyou Foods Co and China Petroleum Chemical, you can compare the effects of market volatilities on Youyou Foods Co and China Petroleum 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 Co with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods Co and China Petroleum.
Diversification Opportunities for Youyou Foods Co and China Petroleum
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Youyou and China is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and Youyou Foods Co 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Youyou Foods Co i.e., Youyou Foods Co and China Petroleum go up and down completely randomly.
Pair Corralation between Youyou Foods Co and China Petroleum
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 5.08 times more return on investment than China Petroleum. However, Youyou Foods Co is 5.08 times more volatile than China Petroleum Chemical. It trades about 0.3 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.15 per unit of risk. If you would invest 869.00 in Youyou Foods Co on September 1, 2024 and sell it today you would earn a total of 273.00 from holding Youyou Foods Co or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Youyou Foods Co |
| China Petroleum Chemical |
Youyou Foods Co and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods Co and China Petroleum
The main advantage of trading using opposite Youyou Foods Co and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods Co position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Youyou Foods Co vs. Xiangyang Automobile Bearing | Youyou Foods Co vs. Sichuan Teway Food | Youyou Foods Co vs. CIMC Vehicles Co | Youyou Foods Co vs. Gan Yuan Foods |
| China Petroleum vs. Shanghai Material Trading | China Petroleum vs. Dazhong Transportation Group | China Petroleum vs. Luyin Investment Group | China Petroleum vs. Hubeiyichang Transportation 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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