Correlation Between China Publishing and Muyuan Foodstuff
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By analyzing existing cross correlation between China Publishing Media and Muyuan Foodstuff Co, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Muyuan Foodstuff.
Diversification Opportunities for China Publishing and Muyuan Foodstuff
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Muyuan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and China Publishing 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 China Publishing Media 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 China Publishing i.e., China Publishing and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between China Publishing and Muyuan Foodstuff
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.55 times more return on investment than Muyuan Foodstuff. However, China Publishing is 1.55 times more volatile than Muyuan Foodstuff Co. It trades about 0.02 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about 0.01 per unit of risk. If you would invest 667.00 in China Publishing Media on November 3, 2024 and sell it today you would earn a total of 29.00 from holding China Publishing Media or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| China Publishing Media |
| Muyuan Foodstuff |
China Publishing and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Muyuan Foodstuff
The main advantage of trading using opposite China Publishing and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.| China Publishing vs. Jinyu Bio Technology Co | China Publishing vs. Beijing Kingsoft Office | China Publishing vs. Bangyan Technology Co | China Publishing vs. Dhc Software Co |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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