Correlation Between Markor International and Der International
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By analyzing existing cross correlation between Markor International Home and Der International Home, you can compare the effects of market volatilities on Markor International and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Der International.
Diversification Opportunities for Markor International and Der International
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Markor and Der is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Markor International i.e., Markor International and Der International go up and down completely randomly.
Pair Corralation between Markor International and Der International
Assuming the 90 days trading horizon Markor International is expected to generate 2.27 times less return on investment than Der International. But when comparing it to its historical volatility, Markor International Home is 1.06 times less risky than Der International. It trades about 0.1 of its potential returns per unit of risk. Der International Home is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 456.00 in Der International Home on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Der International Home or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Der International Home
Performance |
| Timeline |
| Markor International Home |
| Der International Home |
Markor International and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Der International
The main advantage of trading using opposite Markor International and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Markor International vs. Industrial and Commercial | Markor International vs. Agricultural Bank of | Markor International vs. China Construction Bank | Markor International vs. Bank of China |
| Der International vs. Agricultural Bank of | Der International vs. Industrial and Commercial | Der International vs. Bank of China | Der International vs. China Construction Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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