Correlation Between Youyou Foods and Shaanxi Meineng
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By analyzing existing cross correlation between Youyou Foods Co and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Youyou Foods and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Shaanxi Meineng.
Diversification Opportunities for Youyou Foods and Shaanxi Meineng
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Shaanxi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Youyou Foods i.e., Youyou Foods and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Youyou Foods and Shaanxi Meineng
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.86 times more return on investment than Shaanxi Meineng. However, Youyou Foods Co is 1.17 times less risky than Shaanxi Meineng. It trades about 0.02 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.01 per unit of risk. If you would invest 900.00 in Youyou Foods Co on October 16, 2024 and sell it today you would earn a total of 88.00 from holding Youyou Foods Co or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Youyou Foods |
| Shaanxi Meineng Clean |
Youyou Foods and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Shaanxi Meineng
The main advantage of trading using opposite Youyou Foods and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Youyou Foods vs. Jiajia Food Group | Youyou Foods vs. HaiXin Foods Co | Youyou Foods vs. Offcn Education Technology | Youyou Foods vs. Northern United Publishing |
| Shaanxi Meineng vs. Muyuan Foodstuff Co | Shaanxi Meineng vs. Youyou Foods Co | Shaanxi Meineng vs. Guangdong Wens Foodstuff | Shaanxi Meineng vs. Hainan Haiqi Transportation |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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