Correlation Between Luolai Home and Markor International
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By analyzing existing cross correlation between Luolai Home Textile and Markor International Home, you can compare the effects of market volatilities on Luolai Home and Markor International 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 Luolai Home with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Markor International.
Diversification Opportunities for Luolai Home and Markor International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luolai and Markor is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home and Luolai Home 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 Luolai Home Textile are associated (or correlated) with Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of Luolai Home i.e., Luolai Home and Markor International go up and down completely randomly.
Pair Corralation between Luolai Home and Markor International
Assuming the 90 days trading horizon Luolai Home Textile is expected to generate 0.57 times more return on investment than Markor International. However, Luolai Home Textile is 1.76 times less risky than Markor International. It trades about 0.0 of its potential returns per unit of risk. Markor International Home is currently generating about -0.01 per unit of risk. If you would invest 945.00 in Luolai Home Textile on September 1, 2024 and sell it today you would lose (56.00) from holding Luolai Home Textile or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luolai Home Textile vs. Markor International Home
Performance |
| Timeline |
| Luolai Home Textile |
| Markor International Home |
Luolai Home and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Markor International
The main advantage of trading using opposite Luolai Home and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home position performs unexpectedly, Markor International 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 Markor International will offset losses from the drop in Markor International's long position.| Luolai Home vs. Chengdu Kanghua Biological | Luolai Home vs. Beijing Wantai Biological | Luolai Home vs. Suzhou Novoprotein Scientific | Luolai Home vs. Aluminum Corp of |
| Markor International vs. Songz Automobile Air | Markor International vs. Guangdong Jingyi Metal | Markor International vs. ZYF Lopsking Aluminum | Markor International vs. Dongfeng Automobile Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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