Correlation Between China Merchants and Marssenger Kitchenware
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By analyzing existing cross correlation between China Merchants Shekou and Marssenger Kitchenware Co, you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Marssenger Kitchenware.
Diversification Opportunities for China Merchants and Marssenger Kitchenware
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Marssenger is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and China Merchants 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 China Merchants Shekou 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 China Merchants i.e., China Merchants and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between China Merchants and Marssenger Kitchenware
Assuming the 90 days trading horizon China Merchants Shekou is expected to generate 0.73 times more return on investment than Marssenger Kitchenware. However, China Merchants Shekou is 1.37 times less risky than Marssenger Kitchenware. It trades about 0.05 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.01 per unit of risk. If you would invest 929.00 in China Merchants Shekou on August 31, 2024 and sell it today you would earn a total of 251.00 from holding China Merchants Shekou or generate 27.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| China Merchants Shekou |
| Marssenger Kitchenware |
China Merchants and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Marssenger Kitchenware
The main advantage of trading using opposite China Merchants and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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.| China Merchants vs. Hengdian Entertainment Co | China Merchants vs. Shenzhen Glory Medical | China Merchants vs. Guangzhou Jinyi Media | China Merchants vs. Guangdong Jinma Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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