Correlation Between Huaibei Mining and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaibei Mining Holdings and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Muyuan Foodstuff.
Diversification Opportunities for Huaibei Mining and Muyuan Foodstuff
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Muyuan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Huaibei Mining and Muyuan Foodstuff
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to generate 1.07 times more return on investment than Muyuan Foodstuff. However, Huaibei Mining is 1.07 times more volatile than Muyuan Foodstuff Co. It trades about 0.09 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.07 per unit of risk. If you would invest 1,329 in Huaibei Mining Holdings on September 12, 2024 and sell it today you would earn a total of 174.00 from holding Huaibei Mining Holdings or generate 13.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Muyuan Foodstuff |
Huaibei Mining and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Muyuan Foodstuff
The main advantage of trading using opposite Huaibei Mining and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Wanhua Chemical Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining |
| Muyuan Foodstuff vs. Nanjing Putian Telecommunications | Muyuan Foodstuff vs. Tianjin Realty Development | Muyuan Foodstuff vs. Kangyue Technology Co | Muyuan Foodstuff vs. Shenzhen Hifuture Electric |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |