Correlation Between Muyuan Foodstuff and Shenyang Huitian
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Muyuan Foodstuff and Shenyang Huitian 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 Muyuan Foodstuff with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Shenyang Huitian.
Diversification Opportunities for Muyuan Foodstuff and Shenyang Huitian
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Muyuan and Shenyang is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Muyuan Foodstuff 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 Muyuan Foodstuff Co are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Shenyang Huitian
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Shenyang Huitian. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.56 times less risky than Shenyang Huitian. The stock trades about -0.02 of its potential returns per unit of risk. The Shenyang Huitian Thermal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 329.00 in Shenyang Huitian Thermal on October 16, 2024 and sell it today you would lose (8.00) from holding Shenyang Huitian Thermal or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Muyuan Foodstuff |
| Shenyang Huitian Thermal |
Muyuan Foodstuff and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Shenyang Huitian
The main advantage of trading using opposite Muyuan Foodstuff and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Guangzhou Restaurants Group | Muyuan Foodstuff vs. Dazhong Transportation Group | Muyuan Foodstuff vs. Hangzhou Arcvideo Technology |
| Shenyang Huitian vs. Xiangyang Automobile Bearing | Shenyang Huitian vs. Anhui Huilong Agricultural | Shenyang Huitian vs. Long Yuan Construction | Shenyang Huitian vs. Masterwork Machinery |
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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