Correlation Between Muyuan Foodstuff and Hangzhou Gisway
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Hangzhou Gisway Information, you can compare the effects of market volatilities on Muyuan Foodstuff and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Hangzhou Gisway.
Diversification Opportunities for Muyuan Foodstuff and Hangzhou Gisway
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Muyuan and Hangzhou is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Hangzhou Gisway
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Hangzhou Gisway. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 2.1 times less risky than Hangzhou Gisway. The stock trades about -0.02 of its potential returns per unit of risk. The Hangzhou Gisway Information is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,137 in Hangzhou Gisway Information on October 11, 2024 and sell it today you would lose (972.00) from holding Hangzhou Gisway Information or give up 23.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.95% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Muyuan Foodstuff |
| Hangzhou Gisway Info |
Muyuan Foodstuff and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Hangzhou Gisway
The main advantage of trading using opposite Muyuan Foodstuff and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Muyuan Foodstuff vs. Aluminum Corp of | Muyuan Foodstuff vs. Citic Offshore Helicopter | Muyuan Foodstuff vs. Tianshan Aluminum Group | Muyuan Foodstuff vs. Henan Shuanghui Investment |
| Hangzhou Gisway vs. Biwin Storage Technology | Hangzhou Gisway vs. Muyuan Foodstuff Co | Hangzhou Gisway vs. Sublime China Information | Hangzhou Gisway vs. CITIC Guoan Information |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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