Correlation Between Markor International and Xilinmen Furniture
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By analyzing existing cross correlation between Markor International Home and Xilinmen Furniture Co, you can compare the effects of market volatilities on Markor International and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Xilinmen Furniture.
Diversification Opportunities for Markor International and Xilinmen Furniture
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Markor and Xilinmen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Markor International i.e., Markor International and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Markor International and Xilinmen Furniture
Assuming the 90 days trading horizon Markor International Home is expected to generate 1.04 times more return on investment than Xilinmen Furniture. However, Markor International is 1.04 times more volatile than Xilinmen Furniture Co. It trades about 0.02 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.06 per unit of risk. If you would invest 205.00 in Markor International Home on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Markor International Home or generate 0.49% 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. Xilinmen Furniture Co
Performance |
| Timeline |
| Markor International Home |
| Xilinmen Furniture |
Markor International and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Xilinmen Furniture
The main advantage of trading using opposite Markor International and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Markor International vs. PetroChina Co Ltd | Markor International vs. China Mobile Limited | Markor International vs. Industrial and Commercial | Markor International vs. China Life Insurance |
| Xilinmen Furniture vs. Tongxing Environmental Protection | Xilinmen Furniture vs. Ningbo Ligong Online | Xilinmen Furniture vs. Guangdong Advertising Co | Xilinmen Furniture vs. Bengang Steel Plates |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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