Correlation Between Youyou Foods and Shenwu Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Youyou Foods Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Youyou Foods and Shenwu Energy 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 Youyou Foods with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Shenwu Energy.
Diversification Opportunities for Youyou Foods and Shenwu Energy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and Shenwu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Youyou Foods 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 Youyou Foods Co are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Youyou Foods i.e., Youyou Foods and Shenwu Energy go up and down completely randomly.
Pair Corralation between Youyou Foods and Shenwu Energy
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.69 times more return on investment than Shenwu Energy. However, Youyou Foods Co is 1.46 times less risky than Shenwu Energy. It trades about 0.04 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.03 per unit of risk. If you would invest 915.00 in Youyou Foods Co on September 14, 2024 and sell it today you would earn a total of 210.00 from holding Youyou Foods Co or generate 22.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Shenwu Energy Saving
Performance |
| Timeline |
| Youyou Foods |
| Shenwu Energy Saving |
Youyou Foods and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Shenwu Energy
The main advantage of trading using opposite Youyou Foods and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Youyou Foods vs. Nanjing Putian Telecommunications | Youyou Foods vs. Tianjin Realty Development | Youyou Foods vs. Kangyue Technology Co | Youyou Foods vs. Shenzhen Hifuture Electric |
| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |