Correlation Between Markor International and Wintao Communications
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By analyzing existing cross correlation between Markor International Home and Wintao Communications Co, you can compare the effects of market volatilities on Markor International and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Wintao Communications.
Diversification Opportunities for Markor International and Wintao Communications
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Wintao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Markor International i.e., Markor International and Wintao Communications go up and down completely randomly.
Pair Corralation between Markor International and Wintao Communications
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Wintao Communications. In addition to that, Markor International is 1.06 times more volatile than Wintao Communications Co. It trades about -0.14 of its total potential returns per unit of risk. Wintao Communications Co is currently generating about 0.21 per unit of volatility. If you would invest 2,003 in Wintao Communications Co on November 6, 2024 and sell it today you would earn a total of 190.00 from holding Wintao Communications Co or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Wintao Communications Co
Performance |
| Timeline |
| Markor International Home |
| Wintao Communications |
Markor International and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Wintao Communications
The main advantage of trading using opposite Markor International and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Markor International vs. Zoy Home Furnishing | Markor International vs. Beijing Kingsoft Office | Markor International vs. Kingclean Electric Co | Markor International vs. Vohringer Home Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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