Correlation Between China Merchants and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Shekou and Muyuan Foodstuff Co, you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Muyuan Foodstuff.
Diversification Opportunities for China Merchants and Muyuan Foodstuff
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Muyuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and China Merchants 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 China Merchants Shekou 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 China Merchants i.e., China Merchants and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between China Merchants and Muyuan Foodstuff
Assuming the 90 days trading horizon China Merchants Shekou is expected to generate 1.43 times more return on investment than Muyuan Foodstuff. However, China Merchants is 1.43 times more volatile than Muyuan Foodstuff Co. It trades about 0.0 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.01 per unit of risk. If you would invest 1,388 in China Merchants Shekou on September 5, 2024 and sell it today you would lose (203.00) from holding China Merchants Shekou or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| China Merchants Shekou |
| Muyuan Foodstuff |
China Merchants and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Muyuan Foodstuff
The main advantage of trading using opposite China Merchants and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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.| China Merchants vs. Shanghai CEO Environmental | China Merchants vs. Dongfeng Automobile Co | China Merchants vs. Huaxia Fund Management | China Merchants vs. Beijing Kaiwen Education |
| Muyuan Foodstuff vs. Poly Real Estate | Muyuan Foodstuff vs. China Vanke Co | Muyuan Foodstuff vs. China Merchants Shekou | Muyuan Foodstuff vs. Huafa Industrial Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |