Correlation Between Shanghai Ziyan and Muyuan Foodstuff
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Muyuan Foodstuff.
Diversification Opportunities for Shanghai Ziyan and Muyuan Foodstuff
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and Muyuan is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Muyuan Foodstuff
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 1.46 times more return on investment than Muyuan Foodstuff. However, Shanghai Ziyan is 1.46 times more volatile than Muyuan Foodstuff Co. It trades about 0.01 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.03 per unit of risk. If you would invest 1,758 in Shanghai Ziyan Foods on October 14, 2024 and sell it today you would lose (48.00) from holding Shanghai Ziyan Foods or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Muyuan Foodstuff |
Shanghai Ziyan and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Muyuan Foodstuff
The main advantage of trading using opposite Shanghai Ziyan and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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