Correlation Between Muyuan Foodstuff and Jinling Hotel
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Jinling Hotel Corp, you can compare the effects of market volatilities on Muyuan Foodstuff and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Jinling Hotel.
Diversification Opportunities for Muyuan Foodstuff and Jinling Hotel
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Muyuan and Jinling is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Jinling Hotel go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Jinling Hotel
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.74 times more return on investment than Jinling Hotel. However, Muyuan Foodstuff Co is 1.35 times less risky than Jinling Hotel. It trades about -0.02 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.03 per unit of risk. If you would invest 4,631 in Muyuan Foodstuff Co on October 16, 2024 and sell it today you would lose (1,006) from holding Muyuan Foodstuff Co or give up 21.72% 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. Jinling Hotel Corp
Performance |
| Timeline |
| Muyuan Foodstuff |
| Jinling Hotel Corp |
Muyuan Foodstuff and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Jinling Hotel
The main advantage of trading using opposite Muyuan Foodstuff and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel'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 |
| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
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.
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