Correlation Between Anhui Deli and Muyuan Foodstuff
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By analyzing existing cross correlation between Anhui Deli Household and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Anhui Deli 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 Anhui Deli with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Muyuan Foodstuff.
Diversification Opportunities for Anhui Deli and Muyuan Foodstuff
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Muyuan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Anhui Deli 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 Anhui Deli Household 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 Anhui Deli i.e., Anhui Deli and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Anhui Deli and Muyuan Foodstuff
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Muyuan Foodstuff. In addition to that, Anhui Deli is 1.77 times more volatile than Muyuan Foodstuff Co. It trades about -0.02 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.02 per unit of volatility. If you would invest 4,737 in Muyuan Foodstuff Co on October 30, 2024 and sell it today you would lose (1,016) from holding Muyuan Foodstuff Co or give up 21.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Anhui Deli Household |
| Muyuan Foodstuff |
Anhui Deli and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Muyuan Foodstuff
The main advantage of trading using opposite Anhui Deli and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli 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.| Anhui Deli vs. Queclink Wireless Solutions | Anhui Deli vs. Beingmate Baby Child | Anhui Deli vs. BizConf Telecom Co | Anhui Deli vs. Wintao Communications Co |
| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Ningbo Kangqiang Electronics | Muyuan Foodstuff vs. Hengerda New Materials | Muyuan Foodstuff vs. Ningbo Tip Rubber |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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