Correlation Between Muyuan Foodstuff and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Muyuan Foodstuff Co and Chengtun Mining Group, you can compare the effects of market volatilities on Muyuan Foodstuff and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Chengtun Mining.
Diversification Opportunities for Muyuan Foodstuff and Chengtun Mining
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Muyuan and Chengtun is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Chengtun Mining go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Chengtun Mining
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.39 times less risky than Chengtun Mining. The stock trades about -0.22 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Chengtun Mining Group on September 13, 2024 and sell it today you would lose (10.00) from holding Chengtun Mining Group or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Chengtun Mining Group
Performance |
| Timeline |
| Muyuan Foodstuff |
| Chengtun Mining Group |
Muyuan Foodstuff and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Chengtun Mining
The main advantage of trading using opposite Muyuan Foodstuff and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Muyuan Foodstuff vs. CSSC Offshore Marine | Muyuan Foodstuff vs. Postal Savings Bank | Muyuan Foodstuff vs. Marssenger Kitchenware Co | Muyuan Foodstuff vs. Yindu Kitchen Equipment |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |