Correlation Between Muyuan Foodstuff and Wuhan Hvsen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Muyuan Foodstuff and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Wuhan Hvsen.
Diversification Opportunities for Muyuan Foodstuff and Wuhan Hvsen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Muyuan and Wuhan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Wuhan Hvsen
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.86 times less risky than Wuhan Hvsen. The stock trades about -0.23 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Wuhan Hvsen Biotechnology on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Wuhan Hvsen Biotechnology or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Muyuan Foodstuff |
| Wuhan Hvsen Biotechnology |
Muyuan Foodstuff and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Wuhan Hvsen
The main advantage of trading using opposite Muyuan Foodstuff and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Muyuan Foodstuff vs. Poly Real Estate | Muyuan Foodstuff vs. China Vanke Co | Muyuan Foodstuff vs. China Merchants Shekou | Muyuan Foodstuff vs. Huafa Industrial Co |
| Wuhan Hvsen vs. Fujian Anjoy Foods | Wuhan Hvsen vs. Great Sun Foods Co | Wuhan Hvsen vs. Beijing Sanyuan Foods | Wuhan Hvsen vs. Muyuan Foodstuff Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |