Correlation Between Markor International and Jiangsu Xinri
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By analyzing existing cross correlation between Markor International Home and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Markor International and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Jiangsu Xinri.
Diversification Opportunities for Markor International and Jiangsu Xinri
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Markor International i.e., Markor International and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Markor International and Jiangsu Xinri
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Jiangsu Xinri. In addition to that, Markor International is 1.33 times more volatile than Jiangsu Xinri E Vehicle. It trades about -0.32 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.2 per unit of volatility. If you would invest 1,148 in Jiangsu Xinri E Vehicle on October 20, 2024 and sell it today you would lose (124.00) from holding Jiangsu Xinri E Vehicle or give up 10.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markor International Home vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Markor International Home |
| Jiangsu Xinri E |
Markor International and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markor International and Jiangsu Xinri
The main advantage of trading using opposite Markor International and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Markor International vs. Linzhou Heavy Machinery | Markor International vs. Gifore Agricultural Machinery | Markor International vs. China World Trade | Markor International vs. Guangzhou KDT Machinery |
| Jiangsu Xinri vs. Markor International Home | Jiangsu Xinri vs. Shanghai Jinfeng Wine | Jiangsu Xinri vs. Innovative Medical Management | Jiangsu Xinri vs. Anhui Gujing Distillery |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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