Correlation Between Muyuan Foodstuff and AVCON Information
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By analyzing existing cross correlation between Muyuan Foodstuff Co and AVCON Information Tech, you can compare the effects of market volatilities on Muyuan Foodstuff and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and AVCON Information.
Diversification Opportunities for Muyuan Foodstuff and AVCON Information
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muyuan and AVCON is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and AVCON Information go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and AVCON Information
Assuming the 90 days trading horizon Muyuan Foodstuff is expected to generate 2.31 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Muyuan Foodstuff Co is 2.22 times less risky than AVCON Information. It trades about 0.02 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 507.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 3.00 from holding AVCON Information Tech or generate 0.59% 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. AVCON Information Tech
Performance |
| Timeline |
| Muyuan Foodstuff |
| AVCON Information Tech |
Muyuan Foodstuff and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and AVCON Information
The main advantage of trading using opposite Muyuan Foodstuff and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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