Correlation Between Markor International and Shanghai Shuixing
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By analyzing existing cross correlation between Markor International Home and Shanghai Shuixing Home, you can compare the effects of market volatilities on Markor International and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Shanghai Shuixing.
Diversification Opportunities for Markor International and Shanghai Shuixing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Markor and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Markor International i.e., Markor International and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Markor International and Shanghai Shuixing
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Shanghai Shuixing. In addition to that, Markor International is 1.28 times more volatile than Shanghai Shuixing Home. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of volatility. If you would invest 1,424 in Shanghai Shuixing Home on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Shanghai Shuixing Home or generate 15.45% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| Markor International Home |
| Shanghai Shuixing Home |
Markor International and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Shanghai Shuixing
The main advantage of trading using opposite Markor International and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Markor International vs. Songz Automobile Air | Markor International vs. Guangdong Jingyi Metal | Markor International vs. ZYF Lopsking Aluminum | Markor International vs. Dongfeng Automobile Co |
| Shanghai Shuixing vs. Chengdu Kanghua Biological | Shanghai Shuixing vs. Beijing Wantai Biological | Shanghai Shuixing vs. Suzhou Novoprotein Scientific | Shanghai Shuixing vs. Aluminum Corp of |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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