Correlation Between Muyuan Foodstuff and Der International
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Der International Home, you can compare the effects of market volatilities on Muyuan Foodstuff and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Der International.
Diversification Opportunities for Muyuan Foodstuff and Der International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Muyuan and Der is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Der International go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Der International
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.26 times more return on investment than Der International. However, Muyuan Foodstuff Co is 3.8 times less risky than Der International. It trades about -0.21 of its potential returns per unit of risk. Der International Home is currently generating about -0.2 per unit of risk. If you would invest 4,099 in Muyuan Foodstuff Co on September 28, 2024 and sell it today you would lose (207.00) from holding Muyuan Foodstuff Co or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Der International Home
Performance |
| Timeline |
| Muyuan Foodstuff |
| Der International Home |
Muyuan Foodstuff and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Der International
The main advantage of trading using opposite Muyuan Foodstuff and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Muyuan Foodstuff vs. City Development Environment | Muyuan Foodstuff vs. Tianjin Capital Environmental | Muyuan Foodstuff vs. Dynagreen Environmental Protection | Muyuan Foodstuff vs. ButOne Information Corp |
| Der International vs. Kweichow Moutai Co | Der International vs. Contemporary Amperex Technology | Der International vs. G bits Network Technology | Der International vs. BYD Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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