Correlation Between Markor International and Shandong Homey
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By analyzing existing cross correlation between Markor International Home and Shandong Homey Aquatic, you can compare the effects of market volatilities on Markor International and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Shandong Homey.
Diversification Opportunities for Markor International and Shandong Homey
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Markor and Shandong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Markor International i.e., Markor International and Shandong Homey go up and down completely randomly.
Pair Corralation between Markor International and Shandong Homey
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Shandong Homey. In addition to that, Markor International is 1.13 times more volatile than Shandong Homey Aquatic. It trades about -0.02 of its total potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.0 per unit of volatility. If you would invest 261.00 in Shandong Homey Aquatic on August 24, 2024 and sell it today you would lose (36.00) from holding Shandong Homey Aquatic or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Markor International Home |
| Shandong Homey Aquatic |
Markor International and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Shandong Homey
The main advantage of trading using opposite Markor International and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Markor International vs. Anji Foodstuff Co | Markor International vs. Xiwang Foodstuffs Co | Markor International vs. Beijing HuaYuanYiTong Thermal | Markor International vs. Xinjiang Baodi Mining |
| Shandong Homey vs. Aluminum Corp of | Shandong Homey vs. COL Digital Publishing | Shandong Homey vs. Shaanxi Meineng Clean | Shandong Homey vs. Gansu Huangtai Wine marketing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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