Correlation Between Marssenger Kitchenware and Guangdong Jingyi
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Marssenger Kitchenware and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Guangdong Jingyi.
Diversification Opportunities for Marssenger Kitchenware and Guangdong Jingyi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marssenger and Guangdong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Guangdong Jingyi
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to under-perform the Guangdong Jingyi. In addition to that, Marssenger Kitchenware is 1.2 times more volatile than Guangdong Jingyi Metal. It trades about -0.01 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.02 per unit of volatility. If you would invest 691.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Jingyi Metal or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Marssenger Kitchenware |
| Guangdong Jingyi Metal |
Marssenger Kitchenware and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Guangdong Jingyi
The main advantage of trading using opposite Marssenger Kitchenware and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. Gansu Jiu Steel |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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