Correlation Between Jinling Hotel and Muyuan Foodstuff
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By analyzing existing cross correlation between Jinling Hotel Corp and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Jinling Hotel 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 Jinling Hotel with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinling Hotel and Muyuan Foodstuff.
Diversification Opportunities for Jinling Hotel and Muyuan Foodstuff
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinling and Muyuan is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jinling Hotel Corp and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Jinling Hotel 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 Jinling Hotel Corp 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 Jinling Hotel i.e., Jinling Hotel and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Jinling Hotel and Muyuan Foodstuff
Assuming the 90 days trading horizon Jinling Hotel Corp is expected to under-perform the Muyuan Foodstuff. In addition to that, Jinling Hotel is 1.35 times more volatile than Muyuan Foodstuff Co. It trades about -0.03 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.02 per unit of volatility. If you would invest 4,631 in Muyuan Foodstuff Co on October 16, 2024 and sell it today you would lose (1,006) from holding Muyuan Foodstuff Co or give up 21.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinling Hotel Corp vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Jinling Hotel Corp |
| Muyuan Foodstuff |
Jinling Hotel and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinling Hotel and Muyuan Foodstuff
The main advantage of trading using opposite Jinling Hotel and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinling Hotel 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.| Jinling Hotel vs. Dongguan Tarry Electronics | Jinling Hotel vs. Aurora Optoelectronics Co | Jinling Hotel vs. TongFu Microelectronics Co | Jinling Hotel vs. Jiangyin Jianghua Microelectronics |
| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Guangzhou Restaurants Group | Muyuan Foodstuff vs. Dazhong Transportation Group | Muyuan Foodstuff vs. Hangzhou Arcvideo Technology |
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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