Correlation Between Jinhui Mining and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhui Mining Co and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Jinhui 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 Jinhui Mining with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Muyuan Foodstuff.
Diversification Opportunities for Jinhui Mining and Muyuan Foodstuff
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Muyuan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining 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 Jinhui 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 Jinhui Mining 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 Jinhui Mining i.e., Jinhui Mining and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Jinhui Mining and Muyuan Foodstuff
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.1 times more return on investment than Muyuan Foodstuff. However, Jinhui Mining is 1.1 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 -0.22 per unit of risk. If you would invest 1,228 in Jinhui Mining Co on September 13, 2024 and sell it today you would lose (13.00) from holding Jinhui Mining Co or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Jinhui Mining |
| Muyuan Foodstuff |
Jinhui Mining and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Muyuan Foodstuff
The main advantage of trading using opposite Jinhui Mining and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui 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.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Shandong Gold Mining |
| Muyuan Foodstuff vs. CSSC Offshore Marine | Muyuan Foodstuff vs. Postal Savings Bank | Muyuan Foodstuff vs. Marssenger Kitchenware Co | Muyuan Foodstuff vs. Yindu Kitchen Equipment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |