Correlation Between Xinke Material and Marssenger Kitchenware
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By analyzing existing cross correlation between Xinke Material and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Marssenger Kitchenware.
Diversification Opportunities for Xinke Material and Marssenger Kitchenware
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinke and Marssenger is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Xinke Material and Marssenger Kitchenware
Assuming the 90 days trading horizon Xinke Material is expected to generate 0.9 times more return on investment than Marssenger Kitchenware. However, Xinke Material is 1.11 times less risky than Marssenger Kitchenware. It trades about 0.18 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.14 per unit of risk. If you would invest 243.00 in Xinke Material on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Xinke Material or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Xinke Material |
| Marssenger Kitchenware |
Xinke Material and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Marssenger Kitchenware
The main advantage of trading using opposite Xinke Material and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Zijin Mining Group | Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Baoshan Iron Steel | Xinke Material vs. Rongsheng Petrochemical Co |
| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. Gansu Jiu Steel |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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