Correlation Between Xiamen Jihong and Markor International
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By analyzing existing cross correlation between Xiamen Jihong Package and Markor International Home, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Markor International.
Diversification Opportunities for Xiamen Jihong and Markor International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Markor is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package 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 Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Markor International go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Markor International
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 0.95 times more return on investment than Markor International. However, Xiamen Jihong Package is 1.06 times less risky than Markor International. It trades about -0.32 of its potential returns per unit of risk. Markor International Home is currently generating about -0.66 per unit of risk. If you would invest 1,525 in Xiamen Jihong Package on October 15, 2024 and sell it today you would lose (333.00) from holding Xiamen Jihong Package or give up 21.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Markor International Home
Performance |
| Timeline |
| Xiamen Jihong Package |
| Markor International Home |
Xiamen Jihong and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Markor International
The main advantage of trading using opposite Xiamen Jihong and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Rising Nonferrous Metals | Xiamen Jihong vs. Offcn Education Technology | Xiamen Jihong vs. Changjiang Publishing Media | Xiamen Jihong vs. Pengxin International Mining |
| Markor International vs. Eyebright Medical Technology | Markor International vs. Jiahe Foods Industry | Markor International vs. Eastroc Beverage Group | Markor International vs. Xiamen Jihong Package |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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