Correlation Between Muyuan Foodstuff and HaiXin Foods
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By analyzing existing cross correlation between Muyuan Foodstuff Co and HaiXin Foods Co, you can compare the effects of market volatilities on Muyuan Foodstuff and HaiXin 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and HaiXin Foods.
Diversification Opportunities for Muyuan Foodstuff and HaiXin Foods
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Muyuan and HaiXin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and HaiXin Foods go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and HaiXin Foods
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.2 times more return on investment than HaiXin Foods. However, Muyuan Foodstuff Co is 5.12 times less risky than HaiXin Foods. It trades about -0.41 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.4 per unit of risk. If you would invest 3,948 in Muyuan Foodstuff Co on October 14, 2024 and sell it today you would lose (328.00) from holding Muyuan Foodstuff Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. HaiXin Foods Co
Performance |
| Timeline |
| Muyuan Foodstuff |
| HaiXin Foods |
Muyuan Foodstuff and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and HaiXin Foods
The main advantage of trading using opposite Muyuan Foodstuff and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, HaiXin 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 HaiXin Foods will offset losses from the drop in HaiXin 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 |
| HaiXin Foods vs. Xinjiang Baodi Mining | HaiXin Foods vs. Sharetronic Data Technology | HaiXin Foods vs. Digiwin Software Co | HaiXin Foods vs. Tianjin Silvery Dragon |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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