Correlation Between Youyou Foods and Sinosteel Engineering
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By analyzing existing cross correlation between Youyou Foods Co and Sinosteel Engineering and, you can compare the effects of market volatilities on Youyou Foods and Sinosteel Engineering 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 Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Sinosteel Engineering.
Diversification Opportunities for Youyou Foods and Sinosteel Engineering
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and Sinosteel is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and 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 Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Youyou Foods i.e., Youyou Foods and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Youyou Foods and Sinosteel Engineering
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 1.0 times more return on investment than Sinosteel Engineering. However, Youyou Foods Co is 1.0 times less risky than Sinosteel Engineering. It trades about 0.04 of its potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.03 per unit of risk. If you would invest 775.00 in Youyou Foods Co on September 8, 2024 and sell it today you would earn a total of 259.00 from holding Youyou Foods Co or generate 33.42% 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. Sinosteel Engineering and
Performance |
| Timeline |
| Youyou Foods |
| Sinosteel Engineering and |
Youyou Foods and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Sinosteel Engineering
The main advantage of trading using opposite Youyou Foods and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Youyou Foods vs. Lutian Machinery Co | Youyou Foods vs. PetroChina Co Ltd | Youyou Foods vs. Bank of China | Youyou Foods vs. Yantai North Andre |
| Sinosteel Engineering vs. Agricultural Bank of | Sinosteel Engineering vs. Industrial and Commercial | Sinosteel Engineering vs. Bank of China | Sinosteel Engineering vs. PetroChina Co Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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