Correlation Between Markor International and UE Furniture
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By analyzing existing cross correlation between Markor International Home and UE Furniture Co, you can compare the effects of market volatilities on Markor International and UE 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 UE Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and UE Furniture.
Diversification Opportunities for Markor International and UE Furniture
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Markor and 603600 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and UE Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UE 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 UE Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UE Furniture has no effect on the direction of Markor International i.e., Markor International and UE Furniture go up and down completely randomly.
Pair Corralation between Markor International and UE Furniture
Assuming the 90 days trading horizon Markor International Home is expected to generate 1.5 times more return on investment than UE Furniture. However, Markor International is 1.5 times more volatile than UE Furniture Co. It trades about 0.37 of its potential returns per unit of risk. UE Furniture Co is currently generating about -0.25 per unit of risk. If you would invest 160.00 in Markor International Home on November 27, 2024 and sell it today you would earn a total of 31.00 from holding Markor International Home or generate 19.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Markor International Home vs. UE Furniture Co
Performance |
Timeline |
Markor International Home |
UE Furniture |
Markor International and UE Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Markor International and UE Furniture
The main advantage of trading using opposite Markor International and UE Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, UE 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 UE Furniture will offset losses from the drop in UE Furniture's long position.Markor International vs. Baoshan Iron Steel | Markor International vs. Sinosteel Engineering and | Markor International vs. Keda Clean Energy | Markor International vs. Hainan Airlines Co |
UE Furniture vs. Aofu Environmental Technology | UE Furniture vs. Tongxing Environmental Protection | UE Furniture vs. JCHX Mining Management | UE Furniture vs. Eit Environmental Development |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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