Correlation Between Sinosteel Engineering and Youyou Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinosteel Engineering and and Youyou Foods Co, you can compare the effects of market volatilities on Sinosteel Engineering and Youyou Foods 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 Sinosteel Engineering with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Youyou Foods.
Diversification Opportunities for Sinosteel Engineering and Youyou Foods
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Youyou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Youyou Foods go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Youyou Foods
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Sinosteel Engineering and is 1.07 times less risky than Youyou Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Youyou Foods Co on September 9, 2024 and sell it today you would earn a total of 97.00 from holding Youyou Foods Co or generate 10.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sinosteel Engineering and vs. Youyou Foods Co
Performance |
Timeline |
Sinosteel Engineering and |
Youyou Foods |
Sinosteel Engineering and Youyou Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinosteel Engineering and Youyou Foods
The main advantage of trading using opposite Sinosteel Engineering and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Youyou Foods 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.The idea behind Sinosteel Engineering and and Youyou Foods Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Youyou Foods vs. China Petroleum Chemical | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. China State Construction | Youyou Foods vs. China Railway 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |