Correlation Between Tjk Machinery and Marssenger Kitchenware
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Tjk Machinery 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 Tjk Machinery with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Marssenger Kitchenware.
Diversification Opportunities for Tjk Machinery and Marssenger Kitchenware
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tjk and Marssenger is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Tjk 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 Tjk Machinery Tianjin 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 Tjk Machinery i.e., Tjk Machinery and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Tjk Machinery and Marssenger Kitchenware
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 1.25 times more return on investment than Marssenger Kitchenware. However, Tjk Machinery is 1.25 times more volatile than Marssenger Kitchenware Co. It trades about -0.18 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.3 per unit of risk. If you would invest 1,490 in Tjk Machinery Tianjin on October 17, 2024 and sell it today you would lose (213.00) from holding Tjk Machinery Tianjin or give up 14.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Marssenger Kitchenware |
Tjk Machinery and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Marssenger Kitchenware
The main advantage of trading using opposite Tjk Machinery and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery 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.| Tjk Machinery vs. Western Metal Materials | Tjk Machinery vs. Malion New Materials | Tjk Machinery vs. Fuda Alloy Materials | Tjk Machinery vs. Uroica Mining Safety |
| Marssenger Kitchenware vs. Tjk Machinery Tianjin | Marssenger Kitchenware vs. Sinomach General Machinery | Marssenger Kitchenware vs. Shaanxi Broadcast TV | Marssenger Kitchenware vs. Sunny Loan Top |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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