Correlation Between Shenzhen MYS and Youyou Foods
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Youyou Foods Co, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Youyou Foods.
Diversification Opportunities for Shenzhen MYS and Youyou Foods
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Youyou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Youyou Foods go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Youyou Foods
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.97 times more return on investment than Youyou Foods. However, Shenzhen MYS Environmental is 1.03 times less risky than Youyou Foods. It trades about 0.24 of its potential returns per unit of risk. Youyou Foods Co is currently generating about 0.21 per unit of risk. If you would invest 213.00 in Shenzhen MYS Environmental on September 9, 2024 and sell it today you would earn a total of 185.00 from holding Shenzhen MYS Environmental or generate 86.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Youyou Foods Co
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Youyou Foods |
Shenzhen MYS and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Youyou Foods
The main advantage of trading using opposite Shenzhen MYS and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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