Correlation Between Markor International and Shaanxi Energy
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By analyzing existing cross correlation between Markor International Home and Shaanxi Energy Investment, you can compare the effects of market volatilities on Markor International and Shaanxi Energy 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 Markor International with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Shaanxi Energy.
Diversification Opportunities for Markor International and Shaanxi Energy
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Shaanxi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and Markor International 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 Markor International Home are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Markor International i.e., Markor International and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Markor International and Shaanxi Energy
Assuming the 90 days trading horizon Markor International Home is expected to generate 6.58 times more return on investment than Shaanxi Energy. However, Markor International is 6.58 times more volatile than Shaanxi Energy Investment. It trades about 0.4 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.57 per unit of risk. If you would invest 160.00 in Markor International Home on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Markor International Home or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Markor International Home vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Markor International Home |
| Shaanxi Energy Investment |
Markor International and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Shaanxi Energy
The main advantage of trading using opposite Markor International and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Markor International vs. Hua Hong Semiconductor | Markor International vs. Fuda Alloy Materials | Markor International vs. Shanghai V Test Semiconductor | Markor International vs. Will Semiconductor Co |
| Shaanxi Energy vs. Jiangsu Yanghe Brewery | Shaanxi Energy vs. Cofoe Medical Technology | Shaanxi Energy vs. Eyebright Medical Technology | Shaanxi Energy vs. CICT Mobile Communication |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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