Correlation Between Muyuan Foodstuff and Shenzhen MYS
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Muyuan Foodstuff and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Shenzhen MYS.
Diversification Opportunities for Muyuan Foodstuff and Shenzhen MYS
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muyuan and Shenzhen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Shenzhen MYS
Assuming the 90 days trading horizon Muyuan Foodstuff is expected to generate 5.78 times less return on investment than Shenzhen MYS. But when comparing it to its historical volatility, Muyuan Foodstuff Co is 1.48 times less risky than Shenzhen MYS. It trades about 0.07 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Shenzhen MYS Environmental on September 12, 2024 and sell it today you would earn a total of 168.00 from holding Shenzhen MYS Environmental or generate 68.57% 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. Shenzhen MYS Environmental
Performance |
| Timeline |
| Muyuan Foodstuff |
| Shenzhen MYS Environ |
Muyuan Foodstuff and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Shenzhen MYS
The main advantage of trading using opposite Muyuan Foodstuff and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Muyuan Foodstuff vs. Nanjing Putian Telecommunications | Muyuan Foodstuff vs. Tianjin Realty Development | Muyuan Foodstuff vs. Kangyue Technology Co | Muyuan Foodstuff vs. Shenzhen Hifuture Electric |
| Shenzhen MYS vs. Ligao Foods CoLtd | Shenzhen MYS vs. Muyuan Foodstuff Co | Shenzhen MYS vs. Youyou Foods Co | Shenzhen MYS vs. Leyard Optoelectronic |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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