Correlation Between Muyuan Foodstuff and Guangdong Jinma
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Muyuan Foodstuff and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Guangdong Jinma.
Diversification Opportunities for Muyuan Foodstuff and Guangdong Jinma
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Muyuan and Guangdong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Guangdong Jinma
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Guangdong Jinma. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 2.48 times less risky than Guangdong Jinma. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,449 in Guangdong Jinma Entertainment on November 3, 2024 and sell it today you would earn a total of 215.00 from holding Guangdong Jinma Entertainment or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Muyuan Foodstuff |
| Guangdong Jinma Ente |
Muyuan Foodstuff and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Guangdong Jinma
The main advantage of trading using opposite Muyuan Foodstuff and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| Muyuan Foodstuff vs. Heilongjiang Transport Development | Muyuan Foodstuff vs. Fiberhome Telecommunication Technologies | Muyuan Foodstuff vs. Ye Chiu Metal | Muyuan Foodstuff vs. AUPU Home Style |
| Guangdong Jinma vs. Hefei Metalforming Mach | Guangdong Jinma vs. Beijing Bewinner Communications | Guangdong Jinma vs. Dr Peng Telecom | Guangdong Jinma vs. Anhui Tongguan Copper |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |