Correlation Between Guangdong Jingyi and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Muyuan Foodstuff.
Diversification Opportunities for Guangdong Jingyi and Muyuan Foodstuff
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Muyuan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Muyuan Foodstuff
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.54 times more return on investment than Muyuan Foodstuff. However, Guangdong Jingyi is 1.54 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 -0.02 per unit of risk. If you would invest 760.00 in Guangdong Jingyi Metal on October 16, 2024 and sell it today you would lose (118.00) from holding Guangdong Jingyi Metal or give up 15.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Muyuan Foodstuff |
Guangdong Jingyi and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Muyuan Foodstuff
The main advantage of trading using opposite Guangdong Jingyi and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |