Correlation Between Sunny Loan and Marssenger Kitchenware
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By analyzing existing cross correlation between Sunny Loan Top and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Sunny Loan and Marssenger Kitchenware 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 Sunny Loan with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Marssenger Kitchenware.
Diversification Opportunities for Sunny Loan and Marssenger Kitchenware
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Marssenger is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Sunny Loan i.e., Sunny Loan and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Sunny Loan and Marssenger Kitchenware
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Marssenger Kitchenware. In addition to that, Sunny Loan is 1.54 times more volatile than Marssenger Kitchenware Co. It trades about -0.21 of its total potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.3 per unit of volatility. If you would invest 1,559 in Marssenger Kitchenware Co on October 17, 2024 and sell it today you would lose (272.00) from holding Marssenger Kitchenware Co or give up 17.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Sunny Loan Top |
| Marssenger Kitchenware |
Sunny Loan and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Marssenger Kitchenware
The main advantage of trading using opposite Sunny Loan and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Sunny Loan vs. Anhui Gujing Distillery | Sunny Loan vs. Beijing Shunxin Agriculture | Sunny Loan vs. Shenyang Huitian Thermal | Sunny Loan vs. Anhui Tongguan Copper |
| Marssenger Kitchenware vs. Tjk Machinery Tianjin | Marssenger Kitchenware vs. Sinomach General Machinery | Marssenger Kitchenware vs. Shaanxi Broadcast TV | Marssenger Kitchenware vs. Sunny Loan Top |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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