Correlation Between Muyuan Foodstuff and China Publishing
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By analyzing existing cross correlation between Muyuan Foodstuff Co and China Publishing Media, you can compare the effects of market volatilities on Muyuan Foodstuff and China Publishing 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 Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and China Publishing.
Diversification Opportunities for Muyuan Foodstuff and China Publishing
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Muyuan and China is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and China Publishing go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and China Publishing
Assuming the 90 days trading horizon Muyuan Foodstuff is expected to generate 2.57 times less return on investment than China Publishing. But when comparing it to its historical volatility, Muyuan Foodstuff Co is 1.55 times less risky than China Publishing. It trades about 0.01 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 667.00 in China Publishing Media on November 3, 2024 and sell it today you would earn a total of 29.00 from holding China Publishing Media or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. China Publishing Media
Performance |
| Timeline |
| Muyuan Foodstuff |
| China Publishing Media |
Muyuan Foodstuff and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and China Publishing
The main advantage of trading using opposite Muyuan Foodstuff and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, China Publishing 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 Publishing will offset losses from the drop in China Publishing's long position.| Muyuan Foodstuff vs. Heilongjiang Transport Development | Muyuan Foodstuff vs. Fiberhome Telecommunication Technologies | Muyuan Foodstuff vs. Ye Chiu Metal | Muyuan Foodstuff vs. AUPU Home Style |
| China Publishing vs. Jinyu Bio Technology Co | China Publishing vs. Beijing Kingsoft Office | China Publishing vs. Bangyan Technology Co | China Publishing vs. Dhc Software Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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