Correlation Between Shanghai Yaoji and Muyuan Foodstuff
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Muyuan Foodstuff Co, you can compare the effects of market volatilities on Shanghai Yaoji 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 Yaoji with a short position of Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Muyuan Foodstuff.
Diversification Opportunities for Shanghai Yaoji and Muyuan Foodstuff
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Muyuan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Yaoji 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 Yaoji Playing 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 Yaoji i.e., Shanghai Yaoji and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Muyuan Foodstuff
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the Muyuan Foodstuff. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Yaoji Playing is 1.12 times less risky than Muyuan Foodstuff. The stock trades about -0.06 of its potential returns per unit of risk. The Muyuan Foodstuff Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,651 in Muyuan Foodstuff Co on July 20, 2025 and sell it today you would earn a total of 411.00 from holding Muyuan Foodstuff Co or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Muyuan Foodstuff |
Shanghai Yaoji and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Muyuan Foodstuff
The main advantage of trading using opposite Shanghai Yaoji and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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 Yaoji vs. Jiangsu Financial Leasing | Shanghai Yaoji vs. Lier Chemical Co | Shanghai Yaoji vs. Jiangsu Jinling Sports | Shanghai Yaoji vs. Dazhong Transportation Group |
| Muyuan Foodstuff vs. Jointo Energy Investment | Muyuan Foodstuff vs. Nuode Investment Co | Muyuan Foodstuff vs. Hainan Airlines Co | Muyuan Foodstuff vs. Zhangjiagang Freetrade Science |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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