Correlation Between Jiangxi Naipu and Youyou Foods
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Youyou Foods Co, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Youyou Foods.
Diversification Opportunities for Jiangxi Naipu and Youyou Foods
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and Youyou is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Youyou Foods go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Youyou Foods
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.33 times less risky than Youyou Foods. The stock trades about -0.16 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Youyou Foods Co on October 28, 2024 and sell it today you would lose (21.00) from holding Youyou Foods Co or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Youyou Foods Co
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Youyou Foods |
Jiangxi Naipu and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Youyou Foods
The main advantage of trading using opposite Jiangxi Naipu and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Sichuan Yahua Industrial | Jiangxi Naipu vs. Soochow Suzhou Industrial | Jiangxi Naipu vs. Shanghai Yanpu Metal | Jiangxi Naipu vs. Zhejiang Yongjin Metal |
| Youyou Foods vs. Ningbo Construction Co | Youyou Foods vs. Offshore Oil Engineering | Youyou Foods vs. Anhui Huilong Agricultural | Youyou Foods vs. Yuanjie Semiconductor Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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