Correlation Between Shenyang Huitian and Muyuan Foodstuff
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Shenyang Huitian and Muyuan Foodstuff 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 Shenyang Huitian with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Muyuan Foodstuff.
Diversification Opportunities for Shenyang Huitian and Muyuan Foodstuff
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenyang and Muyuan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Muyuan Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muyuan Foodstuff has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Muyuan Foodstuff
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.56 times more return on investment than Muyuan Foodstuff. However, Shenyang Huitian is 1.56 times more volatile than Muyuan Foodstuff Co. It trades about 0.01 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.02 per unit of risk. If you would invest 329.00 in Shenyang Huitian Thermal on October 16, 2024 and sell it today you would lose (8.00) from holding Shenyang Huitian Thermal or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Muyuan Foodstuff |
Shenyang Huitian and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Muyuan Foodstuff
The main advantage of trading using opposite Shenyang Huitian and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Muyuan Foodstuff 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 Muyuan Foodstuff will offset losses from the drop in Muyuan Foodstuff's long position.| Shenyang Huitian vs. Xiangyang Automobile Bearing | Shenyang Huitian vs. Anhui Huilong Agricultural | Shenyang Huitian vs. Long Yuan Construction | Shenyang Huitian vs. Masterwork Machinery |
| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Guangzhou Restaurants Group | Muyuan Foodstuff vs. Dazhong Transportation Group | Muyuan Foodstuff vs. Hangzhou Arcvideo 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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