Correlation Between Muyuan Foodstuff and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Muyuan Foodstuff and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Guangdong Jingyi.
Diversification Opportunities for Muyuan Foodstuff and Guangdong Jingyi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muyuan and Guangdong is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Guangdong Jingyi
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.33 times less risky than Guangdong Jingyi. The stock trades about -0.45 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 718.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Guangdong Jingyi Metal or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Muyuan Foodstuff |
| Guangdong Jingyi Metal |
Muyuan Foodstuff and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Guangdong Jingyi
The main advantage of trading using opposite Muyuan Foodstuff and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Muyuan Foodstuff vs. China Petroleum Chemical | Muyuan Foodstuff vs. PetroChina Co Ltd | Muyuan Foodstuff vs. China State Construction | Muyuan Foodstuff vs. China Railway Group |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |