Correlation Between Sinomach Automobile and Youyou Foods
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By analyzing existing cross correlation between Sinomach Automobile Co and Youyou Foods Co, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Youyou Foods.
Diversification Opportunities for Sinomach Automobile and Youyou Foods
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Youyou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods and Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Youyou Foods go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Youyou Foods
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Youyou Foods. In addition to that, Sinomach Automobile is 1.16 times more volatile than Youyou Foods Co. It trades about 0.0 of its total potential returns per unit of risk. Youyou Foods Co is currently generating about 0.03 per unit of volatility. If you would invest 826.00 in Youyou Foods Co on August 29, 2024 and sell it today you would earn a total of 233.00 from holding Youyou Foods Co or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Youyou Foods Co
Performance |
| Timeline |
| Sinomach Automobile |
| Youyou Foods |
Sinomach Automobile and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Youyou Foods
The main advantage of trading using opposite Sinomach Automobile and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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