Correlation Between Marssenger Kitchenware and Dalian Thermal
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By analyzing existing cross correlation between Marssenger Kitchenware Co and Dalian Thermal Power, you can compare the effects of market volatilities on Marssenger Kitchenware and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and Dalian Thermal.
Diversification Opportunities for Marssenger Kitchenware and Dalian Thermal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marssenger and Dalian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and Dalian Thermal go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and Dalian Thermal
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to generate 1.0 times more return on investment than Dalian Thermal. However, Marssenger Kitchenware Co is 1.0 times less risky than Dalian Thermal. It trades about 0.12 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.02 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. Dalian Thermal Power
Performance |
| Timeline |
| Marssenger Kitchenware |
| Dalian Thermal Power |
Marssenger Kitchenware and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marssenger Kitchenware and Dalian Thermal
The main advantage of trading using opposite Marssenger Kitchenware and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal'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 |
| Dalian Thermal vs. Jinhe Biotechnology Co | Dalian Thermal vs. Jiujiang Shanshui Technology | Dalian Thermal vs. Northking Information Technology | Dalian Thermal vs. Jiangxi JDL Environmental |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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