Correlation Between Fujian Anjoy and Muyuan Foodstuff
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By analyzing existing cross correlation between Fujian Anjoy Foods and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Fujian Anjoy 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 Fujian Anjoy with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Anjoy and Muyuan Foodstuff.
Diversification Opportunities for Fujian Anjoy and Muyuan Foodstuff
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Muyuan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Anjoy 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 Fujian Anjoy 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 Fujian Anjoy 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 Fujian Anjoy i.e., Fujian Anjoy and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Fujian Anjoy and Muyuan Foodstuff
Assuming the 90 days trading horizon Fujian Anjoy Foods is expected to under-perform the Muyuan Foodstuff. In addition to that, Fujian Anjoy is 1.18 times more volatile than Muyuan Foodstuff Co. It trades about -0.17 of its total potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.03 per unit of volatility. If you would invest 3,749 in Muyuan Foodstuff Co on November 5, 2024 and sell it today you would lose (28.00) from holding Muyuan Foodstuff Co or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Anjoy Foods vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Fujian Anjoy Foods |
| Muyuan Foodstuff |
Fujian Anjoy and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Anjoy and Muyuan Foodstuff
The main advantage of trading using opposite Fujian Anjoy and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Anjoy 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.| Fujian Anjoy vs. Omnijoi Media Corp | Fujian Anjoy vs. Shanghai Action Education | Fujian Anjoy vs. Time Publishing and | Fujian Anjoy vs. Qtone Education Group |
| Muyuan Foodstuff vs. Fujian Longzhou Transportation | Muyuan Foodstuff vs. Chongqing Changan Automobile | Muyuan Foodstuff vs. Songz Automobile Air | Muyuan Foodstuff vs. Heilongjiang Transport Development |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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