Correlation Between Shandong Ruifeng and Marssenger Kitchenware
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Marssenger Kitchenware.
Diversification Opportunities for Shandong Ruifeng and Marssenger Kitchenware
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Marssenger is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Marssenger Kitchenware
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 1.69 times more return on investment than Marssenger Kitchenware. However, Shandong Ruifeng is 1.69 times more volatile than Marssenger Kitchenware Co. It trades about 0.09 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.1 per unit of risk. If you would invest 1,013 in Shandong Ruifeng Chemical on August 31, 2024 and sell it today you would earn a total of 86.00 from holding Shandong Ruifeng Chemical or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Marssenger Kitchenware |
Shandong Ruifeng and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Marssenger Kitchenware
The main advantage of trading using opposite Shandong Ruifeng and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Unisplendour Corp | Shandong Ruifeng vs. Bank of Suzhou | Shandong Ruifeng vs. Guangdong Marubi Biotechnology | Shandong Ruifeng vs. Industrial Bank 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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