Correlation Between Marssenger Kitchenware and Shandong Hongchuang
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Marssenger Kitchenware and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Shandong Hongchuang.
Diversification Opportunities for Marssenger Kitchenware and Shandong Hongchuang
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marssenger and Shandong is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Shandong Hongchuang
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to under-perform the Shandong Hongchuang. In addition to that, Marssenger Kitchenware is 1.5 times more volatile than Shandong Hongchuang Aluminum. It trades about -0.03 of its total potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.08 per unit of volatility. If you would invest 424.00 in Shandong Hongchuang Aluminum on September 28, 2024 and sell it today you would earn a total of 473.00 from holding Shandong Hongchuang Aluminum or generate 111.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Marssenger Kitchenware |
| Shandong Hongchuang |
Marssenger Kitchenware and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Shandong Hongchuang
The main advantage of trading using opposite Marssenger Kitchenware and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. China Construction Bank |
| Shandong Hongchuang vs. Wintao Communications Co | Shandong Hongchuang vs. Xiangpiaopiao Food Co | Shandong Hongchuang vs. Gansu Huangtai Wine marketing | Shandong Hongchuang vs. Qingdao Foods 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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