Correlation Between Markor International and Muyuan Foodstuff
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By analyzing existing cross correlation between Markor International Home and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Markor International 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 Markor International with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Muyuan Foodstuff.
Diversification Opportunities for Markor International and Muyuan Foodstuff
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Markor and Muyuan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Markor International 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 Markor International Home 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 Markor International i.e., Markor International and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Markor International and Muyuan Foodstuff
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Muyuan Foodstuff. In addition to that, Markor International is 2.3 times more volatile than Muyuan Foodstuff Co. It trades about -0.29 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.17 per unit of volatility. If you would invest 3,853 in Muyuan Foodstuff Co on October 28, 2024 and sell it today you would lose (165.00) from holding Muyuan Foodstuff Co or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Markor International Home |
| Muyuan Foodstuff |
Markor International and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Muyuan Foodstuff
The main advantage of trading using opposite Markor International and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International 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.The idea behind Markor International Home and Muyuan Foodstuff Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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