Correlation Between Guangxi Guitang and Muyuan Foodstuff
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By analyzing existing cross correlation between Guangxi Guitang Group and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Guangxi Guitang 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 Guangxi Guitang with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guitang and Muyuan Foodstuff.
Diversification Opportunities for Guangxi Guitang and Muyuan Foodstuff
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangxi and Muyuan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guitang Group and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Guangxi Guitang 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 Guangxi Guitang Group 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 Guangxi Guitang i.e., Guangxi Guitang and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Guangxi Guitang and Muyuan Foodstuff
Assuming the 90 days trading horizon Guangxi Guitang Group is expected to generate 6.27 times more return on investment than Muyuan Foodstuff. However, Guangxi Guitang is 6.27 times more volatile than Muyuan Foodstuff Co. It trades about 0.31 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.31 per unit of risk. If you would invest 866.00 in Guangxi Guitang Group on September 13, 2024 and sell it today you would earn a total of 536.00 from holding Guangxi Guitang Group or generate 61.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guitang Group vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Guangxi Guitang Group |
| Muyuan Foodstuff |
Guangxi Guitang and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guitang and Muyuan Foodstuff
The main advantage of trading using opposite Guangxi Guitang and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guitang 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.| Guangxi Guitang vs. Muyuan Foodstuff Co | Guangxi Guitang vs. Youyou Foods Co | Guangxi Guitang vs. Yunnan Jianzhijia Health Chain | Guangxi Guitang vs. Anji Foodstuff Co |
| Muyuan Foodstuff vs. Nanjing Putian Telecommunications | Muyuan Foodstuff vs. Tianjin Realty Development | Muyuan Foodstuff vs. Kangyue Technology Co | Muyuan Foodstuff vs. Shenzhen Hifuture Electric |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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