Correlation Between Muyuan Foodstuff and Marssenger Kitchenware
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Muyuan Foodstuff and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Marssenger Kitchenware.
Diversification Opportunities for Muyuan Foodstuff and Marssenger Kitchenware
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Muyuan and Marssenger is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Marssenger Kitchenware
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.53 times more return on investment than Marssenger Kitchenware. However, Muyuan Foodstuff Co is 1.89 times less risky than Marssenger Kitchenware. It trades about -0.02 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.04 per unit of risk. If you would invest 4,631 in Muyuan Foodstuff Co on October 16, 2024 and sell it today you would lose (1,006) from holding Muyuan Foodstuff Co or give up 21.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Muyuan Foodstuff |
| Marssenger Kitchenware |
Muyuan Foodstuff and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Marssenger Kitchenware
The main advantage of trading using opposite Muyuan Foodstuff and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Guangzhou Restaurants Group | Muyuan Foodstuff vs. Dazhong Transportation Group | Muyuan Foodstuff vs. Hangzhou Arcvideo 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |