Correlation Between Xian International and Marssenger Kitchenware
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By analyzing existing cross correlation between Xian International Medical and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Xian International and Marssenger Kitchenware 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 Xian International with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Marssenger Kitchenware.
Diversification Opportunities for Xian International and Marssenger Kitchenware
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Marssenger is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Xian 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 Xian International Medical are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Xian International i.e., Xian International and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Xian International and Marssenger Kitchenware
Assuming the 90 days trading horizon Xian International Medical is expected to generate 1.22 times more return on investment than Marssenger Kitchenware. However, Xian International is 1.22 times more volatile than Marssenger Kitchenware Co. It trades about 0.17 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.15 per unit of risk. If you would invest 539.00 in Xian International Medical on September 5, 2024 and sell it today you would earn a total of 79.00 from holding Xian International Medical or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Xian International |
| Marssenger Kitchenware |
Xian International and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Marssenger Kitchenware
The main advantage of trading using opposite Xian International and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International vs. Bank of China |
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 CEOs Directory module to screen CEOs from public companies around the world.
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