Correlation Between Kingsignal Technology and Muyuan Foodstuff
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By analyzing existing cross correlation between Kingsignal Technology Co and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Kingsignal Technology 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 Kingsignal Technology with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Muyuan Foodstuff.
Diversification Opportunities for Kingsignal Technology and Muyuan Foodstuff
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kingsignal and Muyuan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Kingsignal Technology 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 Kingsignal Technology Co 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 Kingsignal Technology i.e., Kingsignal Technology and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Muyuan Foodstuff
Assuming the 90 days trading horizon Kingsignal Technology Co is expected to generate 4.86 times more return on investment than Muyuan Foodstuff. However, Kingsignal Technology is 4.86 times more volatile than Muyuan Foodstuff Co. It trades about 0.04 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.14 per unit of risk. If you would invest 914.00 in Kingsignal Technology Co on October 30, 2024 and sell it today you would earn a total of 26.00 from holding Kingsignal Technology Co or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Kingsignal Technology |
| Muyuan Foodstuff |
Kingsignal Technology and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Muyuan Foodstuff
The main advantage of trading using opposite Kingsignal Technology and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology 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.| Kingsignal Technology vs. Ligao Foods CoLtd | Kingsignal Technology vs. Xinjiang Tianrun Dairy | Kingsignal Technology vs. Nanya New Material | Kingsignal Technology vs. V V Food |
| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Ningbo Kangqiang Electronics | Muyuan Foodstuff vs. Hengerda New Materials | Muyuan Foodstuff vs. Ningbo Tip Rubber |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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