Correlation Between Dazhong Transportation and Muyuan Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dazhong Transportation Group and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Muyuan Foodstuff.
Diversification Opportunities for Dazhong Transportation and Muyuan Foodstuff
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dazhong and Muyuan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff and Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Muyuan Foodstuff
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.5 times more return on investment than Muyuan Foodstuff. However, Dazhong Transportation is 1.5 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 -0.02 per unit of risk. If you would invest 25.00 in Dazhong Transportation Group on October 30, 2024 and sell it today you would lose (2.00) from holding Dazhong Transportation Group or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Dazhong Transportation |
| Muyuan Foodstuff |
Dazhong Transportation and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Muyuan Foodstuff
The main advantage of trading using opposite Dazhong Transportation and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. V V Food | Dazhong Transportation vs. Citic Guoan Wine | Dazhong Transportation vs. Zhangjiagang Elegant Home | Dazhong Transportation vs. CSSC Offshore Marine |
| Muyuan Foodstuff vs. Shanghai Phichem Material | Muyuan Foodstuff vs. Ningbo Kangqiang Electronics | Muyuan Foodstuff vs. Hengerda New Materials | Muyuan Foodstuff vs. Ningbo Tip Rubber |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |