Correlation Between Muyuan Foodstuff and China Marine
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By analyzing existing cross correlation between Muyuan Foodstuff Co and China Marine Information, you can compare the effects of market volatilities on Muyuan Foodstuff and China Marine 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 Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and China Marine.
Diversification Opportunities for Muyuan Foodstuff and China Marine
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Muyuan and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and China Marine go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and China Marine
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the China Marine. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.53 times less risky than China Marine. The stock trades about -0.02 of its potential returns per unit of risk. The China Marine Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,591 in China Marine Information on October 25, 2024 and sell it today you would earn a total of 15.00 from holding China Marine Information or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. China Marine Information
Performance |
| Timeline |
| Muyuan Foodstuff |
| China Marine Information |
Muyuan Foodstuff and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and China Marine
The main advantage of trading using opposite Muyuan Foodstuff and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, China Marine 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 Marine will offset losses from the drop in China Marine's long position.| Muyuan Foodstuff vs. Zhejiang Yinlun Machinery | Muyuan Foodstuff vs. Shenyang Blue Silver | Muyuan Foodstuff vs. Chengtun Mining Group | Muyuan Foodstuff vs. Zhengzhou Coal Mining |
| China Marine vs. Kweichow Moutai Co | China Marine vs. NAURA Technology Group | China Marine vs. APT Medical | China Marine vs. BYD Co Ltd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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