Correlation Between Shunfeng International and M/I Homes

Can any of the company-specific risk be diversified away by investing in both Shunfeng International and M/I Homes 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 Shunfeng International and M/I Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shunfeng International Clean and MI Homes, you can compare the effects of market volatilities on Shunfeng International and M/I Homes 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 Shunfeng International with a short position of M/I Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shunfeng International and M/I Homes.

Diversification Opportunities for Shunfeng International and M/I Homes

0.0

Correlation Coefficient

Shunfeng International  M/I Homes

Pay attention - limited upside

The 3 months correlation between Shunfeng and M/I is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shunfeng International Clean and MI Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M/I Homes and Shunfeng International 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 Shunfeng International Clean are associated (or correlated) with M/I Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M/I Homes has no effect on the direction of Shunfeng International i.e., Shunfeng International and M/I Homes go up and down completely randomly.

Pair Corralation between Shunfeng International and M/I Homes

If you would invest  9,238  in MI Homes on April 24, 2025 and sell it today you would earn a total of  536.00  from holding MI Homes or generate 5.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shunfeng International Clean  vs.  MI Homes

Shunfeng International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shunfeng International Clean has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Shunfeng International is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

M/I Homes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MI Homes are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, M/I Homes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Shunfeng International and M/I Homes

The main advantage of trading using opposite Shunfeng International and M/I Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shunfeng International position performs unexpectedly, M/I Homes 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 M/I Homes will offset losses from the drop in M/I Homes' long position.

The idea behind Shunfeng International Clean and MI Homes pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.