Correlation Between Shandong Homey and Muyuan Foodstuff
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By analyzing existing cross correlation between Shandong Homey Aquatic and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Muyuan Foodstuff.
Diversification Opportunities for Shandong Homey and Muyuan Foodstuff
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Muyuan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Shandong Homey and Muyuan Foodstuff
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to under-perform the Muyuan Foodstuff. In addition to that, Shandong Homey is 3.32 times more volatile than Muyuan Foodstuff Co. It trades about -0.37 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.41 per unit of volatility. If you would invest 3,948 in Muyuan Foodstuff Co on October 14, 2024 and sell it today you would lose (328.00) from holding Muyuan Foodstuff Co or give up 8.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Muyuan Foodstuff |
Shandong Homey and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Muyuan Foodstuff
The main advantage of trading using opposite Shandong Homey and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. GRG Banking Equipment | Shandong Homey vs. Bank of Suzhou | Shandong Homey vs. Sunny Loan Top |
| Muyuan Foodstuff vs. Guangdong Wens Foodstuff | Muyuan Foodstuff vs. Miracll Chemicals Co | Muyuan Foodstuff vs. HaiXin Foods Co | Muyuan Foodstuff vs. Gan Yuan Foods |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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