Correlation Between Muyuan Foodstuff and China Construction
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By analyzing existing cross correlation between Muyuan Foodstuff Co and China Construction Bank, you can compare the effects of market volatilities on Muyuan Foodstuff and China Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and China Construction.
Diversification Opportunities for Muyuan Foodstuff and China Construction
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Muyuan and China is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and China Construction go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and China Construction
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to under-perform the China Construction. But the stock apears to be less risky and, when comparing its historical volatility, Muyuan Foodstuff Co is 1.11 times less risky than China Construction. The stock trades about -0.17 of its potential returns per unit of risk. The China Construction Bank is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 837.00 in China Construction Bank on October 11, 2024 and sell it today you would earn a total of 47.00 from holding China Construction Bank or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. China Construction Bank
Performance |
| Timeline |
| Muyuan Foodstuff |
| China Construction Bank |
Muyuan Foodstuff and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and China Construction
The main advantage of trading using opposite Muyuan Foodstuff and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, China Construction 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 Construction will offset losses from the drop in China Construction's long position.| Muyuan Foodstuff vs. Aluminum Corp of | Muyuan Foodstuff vs. Citic Offshore Helicopter | Muyuan Foodstuff vs. Tianshan Aluminum Group | Muyuan Foodstuff vs. Henan Shuanghui Investment |
| China Construction vs. Luolai Home Textile | China Construction vs. Sichuan Fulin Transportation | China Construction vs. Easyhome New Retail | China Construction vs. Road Environment Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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