Correlation Between Linzhou Heavy and Markor International
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By analyzing existing cross correlation between Linzhou Heavy Machinery and Markor International Home, you can compare the effects of market volatilities on Linzhou Heavy 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 Linzhou Heavy with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linzhou Heavy and Markor International.
Diversification Opportunities for Linzhou Heavy and Markor International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linzhou and Markor is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Linzhou Heavy Machinery 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 Linzhou Heavy 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 Linzhou Heavy Machinery 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 Linzhou Heavy i.e., Linzhou Heavy and Markor International go up and down completely randomly.
Pair Corralation between Linzhou Heavy and Markor International
Assuming the 90 days trading horizon Linzhou Heavy Machinery is expected to generate 0.74 times more return on investment than Markor International. However, Linzhou Heavy Machinery is 1.35 times less risky than Markor International. It trades about 0.06 of its potential returns per unit of risk. Markor International Home is currently generating about -0.24 per unit of risk. If you would invest 376.00 in Linzhou Heavy Machinery on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Linzhou Heavy Machinery or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linzhou Heavy Machinery vs. Markor International Home
Performance |
| Timeline |
| Linzhou Heavy Machinery |
| Markor International Home |
Linzhou Heavy and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linzhou Heavy and Markor International
The main advantage of trading using opposite Linzhou Heavy and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linzhou Heavy 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.| Linzhou Heavy vs. Zhongrun Resources Investment | Linzhou Heavy vs. Xiandai Investment Co | Linzhou Heavy vs. Henan Shuanghui Investment | Linzhou Heavy vs. Nuode Investment Co |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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