Correlation Between Marssenger Kitchenware and Xiamen Hexing
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Xiamen Hexing Packaging, you can compare the effects of market volatilities on Marssenger Kitchenware and Xiamen Hexing 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 Xiamen Hexing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Xiamen Hexing.
Diversification Opportunities for Marssenger Kitchenware and Xiamen Hexing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marssenger and Xiamen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Xiamen Hexing Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Hexing Packaging 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 Xiamen Hexing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Hexing Packaging has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Xiamen Hexing go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Xiamen Hexing
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to generate 2.3 times more return on investment than Xiamen Hexing. However, Marssenger Kitchenware is 2.3 times more volatile than Xiamen Hexing Packaging. It trades about 0.12 of its potential returns per unit of risk. Xiamen Hexing Packaging is currently generating about 0.28 per unit of risk. If you would invest 1,514 in Marssenger Kitchenware Co on September 13, 2024 and sell it today you would earn a total of 133.00 from holding Marssenger Kitchenware Co or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. Xiamen Hexing Packaging
Performance |
| Timeline |
| Marssenger Kitchenware |
| Xiamen Hexing Packaging |
Marssenger Kitchenware and Xiamen Hexing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Xiamen Hexing
The main advantage of trading using opposite Marssenger Kitchenware and Xiamen Hexing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Xiamen Hexing 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 Xiamen Hexing will offset losses from the drop in Xiamen Hexing's long position.| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. China Longyuan Power | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China |
| Xiamen Hexing vs. Kontour Medical Technology | Xiamen Hexing vs. Double Medical Technology | Xiamen Hexing vs. Xiangyu Medical Co | Xiamen Hexing vs. Xian International Medical |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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