Correlation Between Muyuan Foodstuff and Poly Real
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Poly Real Estate, you can compare the effects of market volatilities on Muyuan Foodstuff and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Poly Real.
Diversification Opportunities for Muyuan Foodstuff and Poly Real
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Muyuan and Poly is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Poly Real go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Poly Real
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Poly Real. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.37 times less risky than Poly Real. The stock trades about -0.23 of its potential returns per unit of risk. The Poly Real Estate is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Poly Real Estate on September 5, 2024 and sell it today you would lose (57.00) from holding Poly Real Estate or give up 5.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Poly Real Estate
Performance |
| Timeline |
| Muyuan Foodstuff |
| Poly Real Estate |
Muyuan Foodstuff and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Poly Real
The main advantage of trading using opposite Muyuan Foodstuff and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real'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 |
| Poly Real vs. Jafron Biomedical Co | Poly Real vs. Guangzhou Boji Medical | Poly Real vs. Sichuan Hebang Biotechnology | Poly Real vs. Changchun BCHT Biotechnology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |