Correlation Between Muyuan Foodstuff and Shandong Homey
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Shandong Homey Aquatic, you can compare the effects of market volatilities on Muyuan Foodstuff and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Shandong Homey.
Diversification Opportunities for Muyuan Foodstuff and Shandong Homey
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Muyuan and Shandong is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Shandong Homey go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Shandong Homey
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.3 times more return on investment than Shandong Homey. However, Muyuan Foodstuff Co is 3.32 times less risky than Shandong Homey. It trades about -0.41 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.37 per unit of risk. If you would invest 3,948 in Muyuan Foodstuff Co on October 14, 2024 and sell it today you would lose (328.00) from holding Muyuan Foodstuff Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Muyuan Foodstuff |
| Shandong Homey Aquatic |
Muyuan Foodstuff and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Shandong Homey
The main advantage of trading using opposite Muyuan Foodstuff and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Muyuan Foodstuff vs. Guangdong Wens Foodstuff | Muyuan Foodstuff vs. Miracll Chemicals Co | Muyuan Foodstuff vs. HaiXin Foods Co | Muyuan Foodstuff vs. Gan Yuan Foods |
| Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. GRG Banking Equipment | Shandong Homey vs. Bank of Suzhou | Shandong Homey vs. Sunny Loan Top |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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