Correlation Between Marssenger Kitchenware and Ningbo Kangqiang
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Marssenger Kitchenware and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Ningbo Kangqiang.
Diversification Opportunities for Marssenger Kitchenware and Ningbo Kangqiang
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marssenger and Ningbo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Ningbo Kangqiang
Assuming the 90 days trading horizon Marssenger Kitchenware is expected to generate 1.49 times less return on investment than Ningbo Kangqiang. In addition to that, Marssenger Kitchenware is 1.19 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.06 of its total potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.1 per unit of volatility. If you would invest 1,609 in Ningbo Kangqiang Electronics on November 5, 2024 and sell it today you would earn a total of 104.00 from holding Ningbo Kangqiang Electronics or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Marssenger Kitchenware |
| Ningbo Kangqiang Ele |
Marssenger Kitchenware and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Ningbo Kangqiang
The main advantage of trading using opposite Marssenger Kitchenware and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. China Construction Bank | Marssenger Kitchenware vs. Bank of China |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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