Correlation Between Guizhou Chanhen and Muyuan Foodstuff
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Muyuan Foodstuff.
Diversification Opportunities for Guizhou Chanhen and Muyuan Foodstuff
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guizhou and Muyuan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Muyuan Foodstuff
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Muyuan Foodstuff. In addition to that, Guizhou Chanhen is 1.74 times more volatile than Muyuan Foodstuff Co. It trades about -0.18 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.17 per unit of volatility. If you would invest 3,824 in Muyuan Foodstuff Co on October 22, 2024 and sell it today you would lose (155.00) from holding Muyuan Foodstuff Co or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Muyuan Foodstuff |
Guizhou Chanhen and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Muyuan Foodstuff
The main advantage of trading using opposite Guizhou Chanhen and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Gansu Huangtai Wine marketing | Guizhou Chanhen vs. Easyhome New Retail | Guizhou Chanhen vs. Zhangjiagang Freetrade Science | Guizhou Chanhen vs. Bomesc Offshore Engineering |
| Muyuan Foodstuff vs. Guizhou Chanhen Chemical | Muyuan Foodstuff vs. Xilong Chemical Co | Muyuan Foodstuff vs. Maoming Petro Chemical Shihua | Muyuan Foodstuff vs. Yangmei Chemical 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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