Correlation Between Muyuan Foodstuff and Tianjin Capital
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Tianjin Capital Environmental, you can compare the effects of market volatilities on Muyuan Foodstuff and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Tianjin Capital.
Diversification Opportunities for Muyuan Foodstuff and Tianjin Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Muyuan and Tianjin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Tianjin Capital go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Tianjin Capital
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the Tianjin Capital. In addition to that, Muyuan Foodstuff is 1.16 times more volatile than Tianjin Capital Environmental. It trades about -0.02 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about -0.01 per unit of volatility. If you would invest 614.00 in Tianjin Capital Environmental on October 16, 2024 and sell it today you would lose (64.00) from holding Tianjin Capital Environmental or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Muyuan Foodstuff |
| Tianjin Capital Envi |
Muyuan Foodstuff and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Tianjin Capital
The main advantage of trading using opposite Muyuan Foodstuff and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Guangzhou Restaurants Group | Muyuan Foodstuff vs. Dazhong Transportation Group | Muyuan Foodstuff vs. Hangzhou Arcvideo Technology |
| Tianjin Capital vs. Xiamen Jihong Package | Tianjin Capital vs. Muyuan Foodstuff Co | Tianjin Capital vs. Xiwang Foodstuffs Co | Tianjin Capital vs. Fujian Anjoy Foods |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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