Correlation Between Muyuan Foodstuff and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Xiamen Jihong Package, you can compare the effects of market volatilities on Muyuan Foodstuff and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Xiamen Jihong.
Diversification Opportunities for Muyuan Foodstuff and Xiamen Jihong
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muyuan and Xiamen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Xiamen Jihong
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.62 times more return on investment than Xiamen Jihong. However, Muyuan Foodstuff Co is 1.6 times less risky than Xiamen Jihong. It trades about 0.02 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.03 per unit of risk. If you would invest 3,812 in Muyuan Foodstuff Co on September 14, 2024 and sell it today you would earn a total of 222.00 from holding Muyuan Foodstuff Co or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Xiamen Jihong Package
Performance |
| Timeline |
| Muyuan Foodstuff |
| Xiamen Jihong Package |
Muyuan Foodstuff and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Xiamen Jihong
The main advantage of trading using opposite Muyuan Foodstuff and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Muyuan Foodstuff vs. CSSC Offshore Marine | Muyuan Foodstuff vs. Postal Savings Bank | Muyuan Foodstuff vs. Marssenger Kitchenware Co | Muyuan Foodstuff vs. Yindu Kitchen Equipment |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Shandong Gold Mining |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |