Correlation Between Muyuan Foodstuff and YLZ Information
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By analyzing existing cross correlation between Muyuan Foodstuff Co and YLZ Information Tech, you can compare the effects of market volatilities on Muyuan Foodstuff and YLZ 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and YLZ Information.
Diversification Opportunities for Muyuan Foodstuff and YLZ Information
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Muyuan and YLZ is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and YLZ Information go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and YLZ Information
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.42 times more return on investment than YLZ Information. However, Muyuan Foodstuff Co is 2.38 times less risky than YLZ Information. It trades about 0.02 of its potential returns per unit of risk. YLZ Information Tech 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 | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. YLZ Information Tech
Performance |
| Timeline |
| Muyuan Foodstuff |
| YLZ Information Tech |
Muyuan Foodstuff and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and YLZ Information
The main advantage of trading using opposite Muyuan Foodstuff and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, YLZ 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 YLZ Information will offset losses from the drop in YLZ 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 |
| YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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