Correlation Between Markor International and Dongfeng Automobile
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By analyzing existing cross correlation between Markor International Home and Dongfeng Automobile Co, you can compare the effects of market volatilities on Markor International and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Dongfeng Automobile.
Diversification Opportunities for Markor International and Dongfeng Automobile
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Dongfeng is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Markor International i.e., Markor International and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Markor International and Dongfeng Automobile
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Dongfeng Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Markor International Home is 1.07 times less risky than Dongfeng Automobile. The stock trades about -0.25 of its potential returns per unit of risk. The Dongfeng Automobile Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 779.00 in Dongfeng Automobile Co on October 29, 2024 and sell it today you would lose (91.00) from holding Dongfeng Automobile Co or give up 11.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Markor International Home |
| Dongfeng Automobile |
Markor International and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Dongfeng Automobile
The main advantage of trading using opposite Markor International and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Markor International vs. Northern United Publishing | Markor International vs. Tangel Publishing | Markor International vs. Jiangsu Broadcasting Cable | Markor International vs. Shandong Publishing Media |
| Dongfeng Automobile vs. Guangzhou Jinyi Media | Dongfeng Automobile vs. Xinxiang Chemical Fiber | Dongfeng Automobile vs. Omnijoi Media Corp | Dongfeng Automobile vs. Liaoning Dingjide Petrochemical |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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