Correlation Between Marssenger Kitchenware and Yingde Greatchem
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Marssenger Kitchenware and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Yingde Greatchem.
Diversification Opportunities for Marssenger Kitchenware and Yingde Greatchem
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Marssenger and Yingde is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Yingde Greatchem
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to generate 1.69 times more return on investment than Yingde Greatchem. However, Marssenger Kitchenware is 1.69 times more volatile than Yingde Greatchem Chemicals. It trades about 0.12 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about 0.04 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marssenger Kitchenware Co vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Marssenger Kitchenware |
| Yingde Greatchem Che |
Marssenger Kitchenware and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Yingde Greatchem
The main advantage of trading using opposite Marssenger Kitchenware and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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