Correlation Between Marssenger Kitchenware and Shandong Ruifeng
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Marssenger Kitchenware and Shandong Ruifeng 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 Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Shandong Ruifeng.
Diversification Opportunities for Marssenger Kitchenware and Shandong Ruifeng
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marssenger and Shandong is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Shandong Ruifeng
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to under-perform the Shandong Ruifeng. But the stock apears to be less risky and, when comparing its historical volatility, Marssenger Kitchenware Co is 1.7 times less risky than Shandong Ruifeng. The stock trades about -0.12 of its potential returns per unit of risk. The Shandong Ruifeng Chemical is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Shandong Ruifeng Chemical on August 27, 2024 and sell it today you would earn a total of 300.00 from holding Shandong Ruifeng Chemical or generate 30.27% 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. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Marssenger Kitchenware |
| Shandong Ruifeng Chemical |
Marssenger Kitchenware and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Shandong Ruifeng
The main advantage of trading using opposite Marssenger Kitchenware and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Shandong Ruifeng 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 Ruifeng will offset losses from the drop in Shandong Ruifeng'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 |
| Shandong Ruifeng vs. Jinhui Mining Co | Shandong Ruifeng vs. Chengtun Mining Group | Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Beijing Kaiwen Education |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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