Correlation Between Grape King and Maywufa
Can any of the company-specific risk be diversified away by investing in both Grape King and Maywufa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grape King and Maywufa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grape King Bio and Maywufa Co, you can compare the effects of market volatilities on Grape King and Maywufa 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 Grape King with a short position of Maywufa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grape King and Maywufa.
Diversification Opportunities for Grape King and Maywufa
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grape and Maywufa is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grape King Bio and Maywufa Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maywufa and Grape King 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 Grape King Bio are associated (or correlated) with Maywufa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maywufa has no effect on the direction of Grape King i.e., Grape King and Maywufa go up and down completely randomly.
Pair Corralation between Grape King and Maywufa
Assuming the 90 days trading horizon Grape King Bio is expected to under-perform the Maywufa. In addition to that, Grape King is 1.55 times more volatile than Maywufa Co. It trades about -0.15 of its total potential returns per unit of risk. Maywufa Co is currently generating about -0.01 per unit of volatility. If you would invest 2,300 in Maywufa Co on October 26, 2024 and sell it today you would lose (5.00) from holding Maywufa Co or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grape King Bio vs. Maywufa Co
Performance |
| Timeline |
| Grape King Bio |
| Maywufa |
Grape King and Maywufa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grape King and Maywufa
The main advantage of trading using opposite Grape King and Maywufa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grape King position performs unexpectedly, Maywufa 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 Maywufa will offset losses from the drop in Maywufa's long position.| Grape King vs. Uni President Enterprises Corp | Grape King vs. Taisun Enterprise Co | Grape King vs. AGV Products Corp | Grape King vs. Great Wall Enterprise |
| Maywufa vs. Standard Chemical Pharmaceutical | Maywufa vs. Sinphar Pharmaceutical Co | Maywufa vs. Apex Biotechnology Corp | Maywufa vs. Grape King Bio |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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