Correlation Between Masterwork Machinery and China International
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By analyzing existing cross correlation between Masterwork Machinery and China International Capital, you can compare the effects of market volatilities on Masterwork Machinery and China 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 Masterwork Machinery with a short position of China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and China International.
Diversification Opportunities for Masterwork Machinery and China International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Masterwork and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International and Masterwork Machinery 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 Masterwork Machinery are associated (or correlated) with China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and China International go up and down completely randomly.
Pair Corralation between Masterwork Machinery and China International
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 2.16 times more return on investment than China International. However, Masterwork Machinery is 2.16 times more volatile than China International Capital. It trades about 0.13 of its potential returns per unit of risk. China International Capital is currently generating about -0.06 per unit of risk. If you would invest 541.00 in Masterwork Machinery on August 26, 2024 and sell it today you would earn a total of 75.00 from holding Masterwork Machinery or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. China International Capital
Performance |
| Timeline |
| Masterwork Machinery |
| China International |
Masterwork Machinery and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and China International
The main advantage of trading using opposite Masterwork Machinery and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, China 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 China International will offset losses from the drop in China International's long position.| Masterwork Machinery vs. Biwin Storage Technology | Masterwork Machinery vs. PetroChina Co Ltd | Masterwork Machinery vs. Industrial and Commercial | Masterwork Machinery vs. China Construction Bank |
| China International vs. Masterwork Machinery | China International vs. Qumei Furniture Group | China International vs. Anhui Huilong Agricultural | China International vs. Long Yuan Construction |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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