Correlation Between Muyuan Foodstuff and Qingdao Foods
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Qingdao Foods Co, you can compare the effects of market volatilities on Muyuan Foodstuff and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Qingdao Foods.
Diversification Opportunities for Muyuan Foodstuff and Qingdao Foods
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Muyuan and Qingdao is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Qingdao Foods go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Qingdao Foods
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Qingdao Foods. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.28 times less risky than Qingdao Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Qingdao Foods Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,386 in Qingdao Foods Co on October 14, 2024 and sell it today you would lose (105.00) from holding Qingdao Foods Co or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Qingdao Foods Co
Performance |
| Timeline |
| Muyuan Foodstuff |
| Qingdao Foods |
Muyuan Foodstuff and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Qingdao Foods
The main advantage of trading using opposite Muyuan Foodstuff and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' long position.| Muyuan Foodstuff vs. Guangdong Wens Foodstuff | Muyuan Foodstuff vs. Miracll Chemicals Co | Muyuan Foodstuff vs. HaiXin Foods Co | Muyuan Foodstuff vs. Gan Yuan Foods |
| Qingdao Foods vs. Shenzhen AV Display Co | Qingdao Foods vs. Anji Foodstuff Co | Qingdao Foods vs. Muyuan Foodstuff Co | Qingdao Foods vs. Anshan Senyuan Road |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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