Correlation Between China Merchants and Marssenger Kitchenware
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By analyzing existing cross correlation between China Merchants Bank and Marssenger Kitchenware Co, you can compare the effects of market volatilities on China Merchants and Marssenger Kitchenware 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 China Merchants with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Marssenger Kitchenware.
Diversification Opportunities for China Merchants and Marssenger Kitchenware
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Marssenger is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and China Merchants 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 China Merchants Bank are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of China Merchants i.e., China Merchants and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between China Merchants and Marssenger Kitchenware
Assuming the 90 days trading horizon China Merchants Bank is expected to under-perform the Marssenger Kitchenware. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Bank is 2.54 times less risky than Marssenger Kitchenware. The stock trades about -0.12 of its potential returns per unit of risk. The Marssenger Kitchenware Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Marssenger Kitchenware Co on August 31, 2024 and sell it today you would earn a total of 86.00 from holding Marssenger Kitchenware Co or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| China Merchants Bank |
| Marssenger Kitchenware |
China Merchants and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Marssenger Kitchenware
The main advantage of trading using opposite China Merchants and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| China Merchants vs. Marssenger Kitchenware Co | China Merchants vs. Maccura Biotechnology Co | China Merchants vs. Shanghai Rightongene Biotechnology | China Merchants vs. Fujian Longzhou Transportation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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