Correlation Between Yangmei Chemical and Muyuan Foodstuff
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By analyzing existing cross correlation between Yangmei Chemical Co and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Yangmei Chemical 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 Yangmei Chemical with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Muyuan Foodstuff.
Diversification Opportunities for Yangmei Chemical and Muyuan Foodstuff
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yangmei and Muyuan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical 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 Yangmei Chemical 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 Yangmei Chemical 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 Yangmei Chemical i.e., Yangmei Chemical and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Muyuan Foodstuff
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Muyuan Foodstuff. In addition to that, Yangmei Chemical is 1.63 times more volatile than Muyuan Foodstuff Co. It trades about -0.07 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.04 per unit of volatility. If you would invest 3,759 in Muyuan Foodstuff Co on November 3, 2024 and sell it today you would lose (38.00) from holding Muyuan Foodstuff Co or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Yangmei Chemical |
| Muyuan Foodstuff |
Yangmei Chemical and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Muyuan Foodstuff
The main advantage of trading using opposite Yangmei Chemical and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical 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.| Yangmei Chemical vs. Beijing Jiaman Dress | Yangmei Chemical vs. GRINM Semiconductor Materials | Yangmei Chemical vs. Zbit Semiconductor A | Yangmei Chemical vs. Union Semiconductor Co |
| Muyuan Foodstuff vs. Panda Financial Holding | Muyuan Foodstuff vs. Linkage Software Co | Muyuan Foodstuff vs. Financial Street Holdings | Muyuan Foodstuff vs. Servyou Software Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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