Correlation Between Muyuan Foodstuff and Hainan Mining
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Hainan Mining Co, you can compare the effects of market volatilities on Muyuan Foodstuff and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Hainan Mining.
Diversification Opportunities for Muyuan Foodstuff and Hainan Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Muyuan and Hainan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Hainan Mining go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Hainan Mining
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.67 times more return on investment than Hainan Mining. However, Muyuan Foodstuff Co is 1.5 times less risky than Hainan Mining. It trades about -0.13 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.26 per unit of risk. If you would invest 3,824 in Muyuan Foodstuff Co on October 23, 2024 and sell it today you would lose (134.00) from holding Muyuan Foodstuff Co or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Hainan Mining Co
Performance |
| Timeline |
| Muyuan Foodstuff |
| Hainan Mining |
Muyuan Foodstuff and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Hainan Mining
The main advantage of trading using opposite Muyuan Foodstuff and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Muyuan Foodstuff vs. Zhengping RoadBridge Constr | Muyuan Foodstuff vs. Shandong Hi Speed RoadBridge | Muyuan Foodstuff vs. Bangyan Technology Co | Muyuan Foodstuff vs. Road Environment Technology |
| Hainan Mining vs. Dongfeng Automobile Co | Hainan Mining vs. Central Plains Environment | Hainan Mining vs. Fujian Nanwang Environment | Hainan Mining vs. Baoshan Iron Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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