Correlation Between Henan Shuanghui and Muyuan Foodstuff
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By analyzing existing cross correlation between Henan Shuanghui Investment and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Muyuan Foodstuff.
Diversification Opportunities for Henan Shuanghui and Muyuan Foodstuff
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henan and Muyuan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Muyuan Foodstuff
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.86 times more return on investment than Muyuan Foodstuff. However, Henan Shuanghui Investment is 1.16 times less risky than Muyuan Foodstuff. It trades about 0.14 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.17 per unit of risk. If you would invest 2,540 in Henan Shuanghui Investment on October 11, 2024 and sell it today you would earn a total of 72.00 from holding Henan Shuanghui Investment or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Muyuan Foodstuff |
Henan Shuanghui and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Muyuan Foodstuff
The main advantage of trading using opposite Henan Shuanghui and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Bank of Suzhou | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Industrial Bank Co |
| Muyuan Foodstuff vs. Aluminum Corp of | Muyuan Foodstuff vs. Citic Offshore Helicopter | Muyuan Foodstuff vs. Tianshan Aluminum Group | Muyuan Foodstuff vs. Henan Shuanghui Investment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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