Correlation Between Muyuan Foodstuff and Sichuan Fulin
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Muyuan Foodstuff and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Sichuan Fulin.
Diversification Opportunities for Muyuan Foodstuff and Sichuan Fulin
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Muyuan and Sichuan is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Sichuan Fulin
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.47 times less risky than Sichuan Fulin. The stock trades about -0.02 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 663.00 in Sichuan Fulin Transportation on October 27, 2024 and sell it today you would earn a total of 54.00 from holding Sichuan Fulin Transportation or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Muyuan Foodstuff |
| Sichuan Fulin Transp |
Muyuan Foodstuff and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Sichuan Fulin
The main advantage of trading using opposite Muyuan Foodstuff and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Muyuan Foodstuff vs. Kweichow Moutai Co | Muyuan Foodstuff vs. Contemporary Amperex Technology | Muyuan Foodstuff vs. G bits Network Technology | Muyuan Foodstuff vs. Beijing Roborock Technology |
| Sichuan Fulin vs. China Mobile Limited | Sichuan Fulin vs. Agricultural Bank of | Sichuan Fulin vs. Industrial and Commercial | Sichuan Fulin vs. China Construction Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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