Correlation Between Youyou Foods and Shanghai OPM
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By analyzing existing cross correlation between Youyou Foods Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Youyou Foods and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Shanghai OPM.
Diversification Opportunities for Youyou Foods and Shanghai OPM
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youyou and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Youyou Foods i.e., Youyou Foods and Shanghai OPM go up and down completely randomly.
Pair Corralation between Youyou Foods and Shanghai OPM
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.29 times more return on investment than Shanghai OPM. However, Youyou Foods is 1.29 times more volatile than Shanghai OPM Biosciences. It trades about 0.06 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.16 per unit of risk. If you would invest 1,028 in Youyou Foods Co on September 26, 2024 and sell it today you would earn a total of 29.00 from holding Youyou Foods Co or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Youyou Foods Co vs. Shanghai OPM Biosciences
Performance |
Timeline |
Youyou Foods |
Shanghai OPM Biosciences |
Youyou Foods and Shanghai OPM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Youyou Foods and Shanghai OPM
The main advantage of trading using opposite Youyou Foods and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM's long position.Youyou Foods vs. Ming Yang Smart | Youyou Foods vs. 159681 | Youyou Foods vs. 159005 | Youyou Foods vs. Loctek Ergonomic Technology |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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