Correlation Between Muyuan Foodstuff and Shanghai Ziyan
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By analyzing existing cross correlation between Muyuan Foodstuff Co and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Muyuan Foodstuff and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muyuan Foodstuff and Shanghai Ziyan.
Diversification Opportunities for Muyuan Foodstuff and Shanghai Ziyan
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Muyuan and Shanghai is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Muyuan Foodstuff Co and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Muyuan Foodstuff i.e., Muyuan Foodstuff and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Muyuan Foodstuff and Shanghai Ziyan
Assuming the 90 days trading horizon Muyuan Foodstuff Co is expected to generate 0.2 times more return on investment than Shanghai Ziyan. However, Muyuan Foodstuff Co is 4.98 times less risky than Shanghai Ziyan. It trades about -0.41 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.09 per unit of risk. If you would invest 3,948 in Muyuan Foodstuff Co on October 14, 2024 and sell it today you would lose (328.00) from holding Muyuan Foodstuff Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muyuan Foodstuff Co vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Muyuan Foodstuff |
| Shanghai Ziyan Foods |
Muyuan Foodstuff and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muyuan Foodstuff and Shanghai Ziyan
The main advantage of trading using opposite Muyuan Foodstuff and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muyuan Foodstuff position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Muyuan Foodstuff vs. Guangdong Wens Foodstuff | Muyuan Foodstuff vs. Miracll Chemicals Co | Muyuan Foodstuff vs. HaiXin Foods Co | Muyuan Foodstuff vs. Gan Yuan Foods |
| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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