Correlation Between Markor International and China Building
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By analyzing existing cross correlation between Markor International Home and China Building Material, you can compare the effects of market volatilities on Markor International and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and China Building.
Diversification Opportunities for Markor International and China Building
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Markor and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Markor International i.e., Markor International and China Building go up and down completely randomly.
Pair Corralation between Markor International and China Building
Assuming the 90 days trading horizon Markor International Home is expected to generate 1.16 times more return on investment than China Building. However, Markor International is 1.16 times more volatile than China Building Material. It trades about -0.01 of its potential returns per unit of risk. China Building Material is currently generating about -0.02 per unit of risk. If you would invest 297.00 in Markor International Home on September 12, 2024 and sell it today you would lose (71.00) from holding Markor International Home or give up 23.91% 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. China Building Material
Performance |
| Timeline |
| Markor International Home |
| China Building Material |
Markor International and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and China Building
The main advantage of trading using opposite Markor International and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Markor International vs. Lutian Machinery Co | Markor International vs. PetroChina Co Ltd | Markor International vs. Bank of China | Markor International vs. Gansu Jiu Steel |
| China Building vs. Qumei Furniture Group | China Building vs. AUPU Home Style | China Building vs. Easyhome New Retail | China Building vs. Markor International Home |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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