Correlation Between Mühlbauer Holding and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Mühlbauer Holding and JIAHUA STORES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mühlbauer Holding and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mhlbauer Holding AG and JIAHUA STORES, you can compare the effects of market volatilities on Mühlbauer Holding and JIAHUA STORES 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 Mühlbauer Holding with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mühlbauer Holding and JIAHUA STORES.
Diversification Opportunities for Mühlbauer Holding and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mühlbauer and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mhlbauer Holding AG and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Mühlbauer Holding 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 Mhlbauer Holding AG are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Mühlbauer Holding i.e., Mühlbauer Holding and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Mühlbauer Holding and JIAHUA STORES
If you would invest 3,960 in Mhlbauer Holding AG on October 9, 2024 and sell it today you would earn a total of 20.00 from holding Mhlbauer Holding AG or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mhlbauer Holding AG vs. JIAHUA STORES
Performance |
| Timeline |
| Mühlbauer Holding |
| JIAHUA STORES |
Mühlbauer Holding and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mühlbauer Holding and JIAHUA STORES
The main advantage of trading using opposite Mühlbauer Holding and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mühlbauer Holding position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Mühlbauer Holding vs. EBRO FOODS | Mühlbauer Holding vs. Austevoll Seafood ASA | Mühlbauer Holding vs. INDOFOOD AGRI RES | Mühlbauer Holding vs. MTY Food Group |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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