Correlation Between Muyuan Foodstuff and Sinomach General
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Sinomach General Machinery, you can compare the effects of market volatilities on Muyuan Foodstuff and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Sinomach General.
Diversification Opportunities for Muyuan Foodstuff and Sinomach General
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Muyuan and Sinomach is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Sinomach General go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Sinomach General
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.45 times more return on investment than Sinomach General. However, Muyuan Foodstuff Co is 2.23 times less risky than Sinomach General. It trades about -0.17 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.25 per unit of risk. If you would invest 3,891 in Muyuan Foodstuff Co on October 11, 2024 and sell it today you would lose (166.00) from holding Muyuan Foodstuff Co or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Muyuan Foodstuff |
| Sinomach General Mac |
Muyuan Foodstuff and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Sinomach General
The main advantage of trading using opposite Muyuan Foodstuff and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General'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 |
| Sinomach General vs. Luyin Investment Group | Sinomach General vs. Fujian Anjoy Foods | Sinomach General vs. Bohai Leasing Co | Sinomach General 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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