Correlation Between Xiamen Jihong and Muyuan Foodstuff
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By analyzing existing cross correlation between Xiamen Jihong Package and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Xiamen Jihong and Muyuan Foodstuff 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 Xiamen Jihong with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Muyuan Foodstuff.
Diversification Opportunities for Xiamen Jihong and Muyuan Foodstuff
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Muyuan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Muyuan Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muyuan Foodstuff has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Muyuan Foodstuff
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Muyuan Foodstuff. In addition to that, Xiamen Jihong is 1.6 times more volatile than Muyuan Foodstuff Co. It trades about -0.03 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.02 per unit of volatility. If you would invest 3,812 in Muyuan Foodstuff Co on September 14, 2024 and sell it today you would earn a total of 222.00 from holding Muyuan Foodstuff Co or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Muyuan Foodstuff |
Xiamen Jihong and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Muyuan Foodstuff
The main advantage of trading using opposite Xiamen Jihong and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Muyuan Foodstuff 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 Muyuan Foodstuff will offset losses from the drop in Muyuan Foodstuff's long position.| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Shandong Gold Mining |
| Muyuan Foodstuff vs. CSSC Offshore Marine | Muyuan Foodstuff vs. Postal Savings Bank | Muyuan Foodstuff vs. Marssenger Kitchenware Co | Muyuan Foodstuff vs. Yindu Kitchen Equipment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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