Correlation Between Hubei Forbon and Muyuan Foodstuff
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By analyzing existing cross correlation between Hubei Forbon Technology and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Hubei Forbon 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 Hubei Forbon with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Muyuan Foodstuff.
Diversification Opportunities for Hubei Forbon and Muyuan Foodstuff
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hubei and Muyuan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Hubei Forbon 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 Hubei Forbon Technology 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 Hubei Forbon i.e., Hubei Forbon and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Hubei Forbon and Muyuan Foodstuff
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 1.69 times more return on investment than Muyuan Foodstuff. However, Hubei Forbon is 1.69 times more volatile than Muyuan Foodstuff Co. It trades about 0.03 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.0 per unit of risk. If you would invest 704.00 in Hubei Forbon Technology on October 16, 2024 and sell it today you would earn a total of 115.00 from holding Hubei Forbon Technology or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Hubei Forbon Technology |
| Muyuan Foodstuff |
Hubei Forbon and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Muyuan Foodstuff
The main advantage of trading using opposite Hubei Forbon and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon 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.| Hubei Forbon vs. UE Furniture Co | Hubei Forbon vs. Shandong Publishing Media | Hubei Forbon vs. Zoy Home Furnishing | Hubei Forbon vs. Heilongjiang Publishing Media |
| Muyuan Foodstuff vs. Dhc Software Co | Muyuan Foodstuff vs. Tianshui Huatian Technology | Muyuan Foodstuff vs. Linewell Software Co | Muyuan Foodstuff vs. Anhui Deli Household |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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