Correlation Between AVCON Information and Muyuan Foodstuff
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By analyzing existing cross correlation between AVCON Information Tech and Muyuan Foodstuff Co, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Muyuan Foodstuff.
Diversification Opportunities for AVCON Information and Muyuan Foodstuff
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVCON and Muyuan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between AVCON Information and Muyuan Foodstuff
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 2.22 times more return on investment than Muyuan Foodstuff. However, AVCON Information is 2.22 times more volatile than Muyuan Foodstuff Co. It trades about 0.02 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.02 per unit of risk. If you would invest 507.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 3.00 from holding AVCON Information Tech or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| AVCON Information Tech |
| Muyuan Foodstuff |
AVCON Information and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Muyuan Foodstuff
The main advantage of trading using opposite AVCON Information and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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