Correlation Between Kangyue Technology and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kangyue Technology Co and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Kangyue 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 Kangyue Technology with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangyue Technology and Muyuan Foodstuff.
Diversification Opportunities for Kangyue Technology and Muyuan Foodstuff
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kangyue and Muyuan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kangyue 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 Kangyue 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 Kangyue 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 Kangyue Technology i.e., Kangyue Technology and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Kangyue Technology and Muyuan Foodstuff
Assuming the 90 days trading horizon Kangyue Technology Co is expected to under-perform the Muyuan Foodstuff. In addition to that, Kangyue Technology is 3.29 times more volatile than Muyuan Foodstuff Co. It trades about -0.33 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.15 per unit of volatility. If you would invest 3,810 in Muyuan Foodstuff Co on October 21, 2024 and sell it today you would lose (141.00) from holding Muyuan Foodstuff Co or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangyue Technology Co vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Kangyue Technology |
| Muyuan Foodstuff |
Kangyue Technology and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangyue Technology and Muyuan Foodstuff
The main advantage of trading using opposite Kangyue Technology and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangyue 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.| Kangyue Technology vs. Kweichow Moutai Co | Kangyue Technology vs. Contemporary Amperex Technology | Kangyue Technology vs. G bits Network Technology | Kangyue Technology vs. Beijing Roborock Technology |
| Muyuan Foodstuff vs. Sichuan Jinshi Technology | Muyuan Foodstuff vs. Hubei Geoway Investment | Muyuan Foodstuff vs. Jonjee Hi tech Industrial | Muyuan Foodstuff vs. Jiangsu Yueda Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |