Correlation Between Guangdong Brandmax and Markor International
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Markor International Home, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Markor International.
Diversification Opportunities for Guangdong Brandmax and Markor International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Markor is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Markor International go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Markor International
Assuming the 90 days trading horizon Guangdong Brandmax is expected to generate 2.1 times less return on investment than Markor International. But when comparing it to its historical volatility, Guangdong Brandmax Marketing is 1.11 times less risky than Markor International. It trades about 0.18 of its potential returns per unit of risk. Markor International Home is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 162.00 in Markor International Home on September 13, 2024 and sell it today you would earn a total of 112.00 from holding Markor International Home or generate 69.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Markor International Home
Performance |
| Timeline |
| Guangdong Brandmax |
| Markor International Home |
Guangdong Brandmax and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Markor International
The main advantage of trading using opposite Guangdong Brandmax and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
| Markor International vs. Tianjin Silvery Dragon | Markor International vs. Xinjiang Baodi Mining | Markor International vs. Shanghai Rendu Biotechnology | Markor International vs. Yili Chuanning Biotechnology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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