Correlation Between Youyou Foods and Dow Jones
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By analyzing existing cross correlation between Youyou Foods Co and Dow Jones Industrial, you can compare the effects of market volatilities on Youyou Foods and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Dow Jones.
Diversification Opportunities for Youyou Foods and Dow Jones
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youyou and Dow is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Youyou Foods i.e., Youyou Foods and Dow Jones go up and down completely randomly.
Pair Corralation between Youyou Foods and Dow Jones
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 5.64 times more return on investment than Dow Jones. However, Youyou Foods is 5.64 times more volatile than Dow Jones Industrial. It trades about 0.3 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of risk. If you would invest 646.00 in Youyou Foods Co on August 28, 2024 and sell it today you would earn a total of 413.00 from holding Youyou Foods Co or generate 63.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.37% |
| Values | Daily Returns |
Youyou Foods Co vs. Dow Jones Industrial
Performance |
| Timeline |
Youyou Foods and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Youyou Foods Co
Pair trading matchups for Youyou Foods
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Youyou Foods and Dow Jones
The main advantage of trading using opposite Youyou Foods and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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