Correlation Between Marssenger Kitchenware and North Huajin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Marssenger Kitchenware Co and North Huajin Chemical, you can compare the effects of market volatilities on Marssenger Kitchenware and North Huajin 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 Marssenger Kitchenware with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and North Huajin.
Diversification Opportunities for Marssenger Kitchenware and North Huajin
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marssenger and North is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Marssenger Kitchenware 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 Marssenger Kitchenware Co are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and North Huajin go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and North Huajin
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to under-perform the North Huajin. But the stock apears to be less risky and, when comparing its historical volatility, Marssenger Kitchenware Co is 1.18 times less risky than North Huajin. The stock trades about -0.12 of its potential returns per unit of risk. The North Huajin Chemical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 561.00 in North Huajin Chemical on August 27, 2024 and sell it today you would lose (21.00) from holding North Huajin Chemical or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. North Huajin Chemical
Performance |
| Timeline |
| Marssenger Kitchenware |
| North Huajin Chemical |
Marssenger Kitchenware and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and North Huajin
The main advantage of trading using opposite Marssenger Kitchenware and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Marssenger Kitchenware vs. China Petroleum Chemical | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. China State Construction | Marssenger Kitchenware vs. China Railway Group |
| North Huajin vs. JiShi Media Co | North Huajin vs. Weihai Honglin Electronic | North Huajin vs. Techshine Electronics Co | North Huajin vs. TongFu Microelectronics 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |