Correlation Between Youyou Foods and Shenzhen MYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Youyou Foods Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Youyou Foods and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Shenzhen MYS.
Diversification Opportunities for Youyou Foods and Shenzhen MYS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youyou and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Youyou Foods i.e., Youyou Foods and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Youyou Foods and Shenzhen MYS
Assuming the 90 days trading horizon Youyou Foods is expected to generate 2.19 times less return on investment than Shenzhen MYS. In addition to that, Youyou Foods is 1.0 times more volatile than Shenzhen MYS Environmental. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 per unit of volatility. If you would invest 285.00 in Shenzhen MYS Environmental on September 5, 2024 and sell it today you would earn a total of 88.00 from holding Shenzhen MYS Environmental or generate 30.88% 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. Shenzhen MYS Environmental
Performance |
Timeline |
Youyou Foods |
Shenzhen MYS Environ |
Youyou Foods and Shenzhen MYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Youyou Foods and Shenzhen MYS
The main advantage of trading using opposite Youyou Foods and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.Youyou Foods vs. Poly Real Estate | Youyou Foods vs. China Vanke Co | Youyou Foods vs. China Merchants Shekou | Youyou Foods vs. Huafa Industrial Co |
Shenzhen MYS vs. Sinocat Environmental Technology | Shenzhen MYS vs. Kuangda Technology Group | Shenzhen MYS vs. Hainan Airlines Co | Shenzhen MYS vs. Olympic Circuit Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |