Correlation Between Youyou Foods and Peoples Insurance
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By analyzing existing cross correlation between Youyou Foods Co and Peoples Insurance of, you can compare the effects of market volatilities on Youyou Foods and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Peoples Insurance.
Diversification Opportunities for Youyou Foods and Peoples Insurance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youyou and Peoples is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Youyou Foods i.e., Youyou Foods and Peoples Insurance go up and down completely randomly.
Pair Corralation between Youyou Foods and Peoples Insurance
Assuming the 90 days trading horizon Youyou Foods is expected to generate 1.67 times less return on investment than Peoples Insurance. In addition to that, Youyou Foods is 1.61 times more volatile than Peoples Insurance of. It trades about 0.04 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.12 per unit of volatility. If you would invest 476.00 in Peoples Insurance of on September 14, 2024 and sell it today you would earn a total of 292.00 from holding Peoples Insurance of or generate 61.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Peoples Insurance of
Performance |
| Timeline |
| Youyou Foods |
| Peoples Insurance |
Youyou Foods and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Peoples Insurance
The main advantage of trading using opposite Youyou Foods and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Youyou Foods vs. Nanjing Putian Telecommunications | Youyou Foods vs. Tianjin Realty Development | Youyou Foods vs. Kangyue Technology Co | Youyou Foods vs. Shenzhen Hifuture Electric |
| Peoples Insurance vs. Cultural Investment Holdings | Peoples Insurance vs. Gome Telecom Equipment | Peoples Insurance vs. Holitech Technology Co | Peoples Insurance vs. Zotye Automobile Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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