Correlation Between Muyuan Foodstuff and China Eastern
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By analyzing existing cross correlation between Muyuan Foodstuff Co and China Eastern Airlines, you can compare the effects of market volatilities on Muyuan Foodstuff and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and China Eastern.
Diversification Opportunities for Muyuan Foodstuff and China Eastern
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Muyuan and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and China Eastern go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and China Eastern
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the China Eastern. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.05 times less risky than China Eastern. The stock trades about -0.22 of its potential returns per unit of risk. The China Eastern Airlines is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 389.00 in China Eastern Airlines on September 15, 2024 and sell it today you would earn a total of 36.00 from holding China Eastern Airlines or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. China Eastern Airlines
Performance |
| Timeline |
| Muyuan Foodstuff |
| China Eastern Airlines |
Muyuan Foodstuff and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and China Eastern
The main advantage of trading using opposite Muyuan Foodstuff and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Muyuan Foodstuff vs. Jiangsu GDK Biotechnology | Muyuan Foodstuff vs. Air China Ltd | Muyuan Foodstuff vs. Yindu Kitchen Equipment | Muyuan Foodstuff vs. MayAir Technology Co |
| China Eastern vs. Sichuan Teway Food | China Eastern vs. Eastroc Beverage Group | China Eastern vs. Jiamei Food Packaging | China Eastern 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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