Correlation Between Youyou Foods and Shenzhen Bioeasy
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By analyzing existing cross correlation between Youyou Foods Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Youyou Foods and Shenzhen Bioeasy 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 Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youyou Foods and Shenzhen Bioeasy.
Diversification Opportunities for Youyou Foods and Shenzhen Bioeasy
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youyou and Shenzhen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Youyou Foods Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Youyou Foods i.e., Youyou Foods and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Youyou Foods and Shenzhen Bioeasy
Assuming the 90 days trading horizon Youyou Foods Co is expected to generate 0.83 times more return on investment than Shenzhen Bioeasy. However, Youyou Foods Co is 1.2 times less risky than Shenzhen Bioeasy. It trades about -0.08 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 1,018 in Youyou Foods Co on November 1, 2024 and sell it today you would lose (42.00) from holding Youyou Foods Co or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youyou Foods Co vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Youyou Foods |
| Shenzhen Bioeasy Bio |
Youyou Foods and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youyou Foods and Shenzhen Bioeasy
The main advantage of trading using opposite Youyou Foods and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youyou Foods position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Youyou Foods vs. Kweichow Moutai Co | Youyou Foods vs. Contemporary Amperex Technology | Youyou Foods vs. G bits Network Technology | Youyou Foods vs. Beijing Roborock Technology |
| Shenzhen Bioeasy vs. Nuode Investment Co | Shenzhen Bioeasy vs. HeBei Jinniu Chemical | Shenzhen Bioeasy vs. Xiangtan Electrochemical Scientific | Shenzhen Bioeasy vs. Lianhe Chemical 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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