Correlation Between Youyou Foods and Poly Real
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By analyzing existing cross correlation between Youyou Foods Co and Poly Real Estate, you can compare the effects of market volatilities on Youyou Foods and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Poly Real.
Diversification Opportunities for Youyou Foods and Poly Real
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Poly is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Youyou Foods i.e., Youyou Foods and Poly Real go up and down completely randomly.
Pair Corralation between Youyou Foods and Poly Real
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 2.96 times more return on investment than Poly Real. However, Youyou Foods is 2.96 times more volatile than Poly Real Estate. It trades about 0.18 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.27 per unit of risk. If you would invest 930.00 in Youyou Foods Co on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Youyou Foods Co or generate 15.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Youyou Foods Co vs. Poly Real Estate
Performance |
Timeline |
Youyou Foods |
Poly Real Estate |
Youyou Foods and Poly Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Youyou Foods and Poly Real
The main advantage of trading using opposite Youyou Foods and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's 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 |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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