Correlation Between Hainan Mining and Youyou Foods
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By analyzing existing cross correlation between Hainan Mining Co and Youyou Foods Co, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Youyou Foods.
Diversification Opportunities for Hainan Mining and Youyou Foods
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Youyou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining 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 Hainan Mining 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 Hainan Mining 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 Hainan Mining i.e., Hainan Mining and Youyou Foods go up and down completely randomly.
Pair Corralation between Hainan Mining and Youyou Foods
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.57 times less risky than Youyou Foods. The stock trades about -0.03 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 642.00 in Youyou Foods Co on October 14, 2024 and sell it today you would earn a total of 388.00 from holding Youyou Foods Co or generate 60.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Youyou Foods Co
Performance |
| Timeline |
| Hainan Mining |
| Youyou Foods |
Hainan Mining and Youyou Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Youyou Foods
The main advantage of trading using opposite Hainan Mining and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Guilin Seamild Foods | Hainan Mining vs. Jiajia Food Group | Hainan Mining vs. New Hope Dairy | Hainan Mining vs. Gansu Huangtai Wine marketing |
| Youyou Foods vs. Shengda Mining Co | Youyou Foods vs. Hainan Mining Co | Youyou Foods vs. Jiangxi Naipu Mining | Youyou Foods vs. Shenyang Blue Silver |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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