Correlation Between China Railway and Markor International
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By analyzing existing cross correlation between China Railway Group and Markor International Home, you can compare the effects of market volatilities on China Railway and Markor International 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 China Railway with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Markor International.
Diversification Opportunities for China Railway and Markor International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Markor is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home and China Railway 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 China Railway Group are associated (or correlated) with Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of China Railway i.e., China Railway and Markor International go up and down completely randomly.
Pair Corralation between China Railway and Markor International
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Markor International. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.55 times less risky than Markor International. The stock trades about -0.02 of its potential returns per unit of risk. The Markor International Home is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Markor International Home on August 26, 2024 and sell it today you would earn a total of 18.00 from holding Markor International Home or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Markor International Home
Performance |
| Timeline |
| China Railway Group |
| Markor International Home |
China Railway and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Markor International
The main advantage of trading using opposite China Railway and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Markor International 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 Markor International will offset losses from the drop in Markor International's long position.| China Railway vs. Hainan Haiqi Transportation | China Railway vs. Guangzhou Seagull Kitchen | China Railway vs. Yindu Kitchen Equipment | China Railway vs. Sunny Loan Top |
| Markor International vs. China Petroleum Chemical | Markor International vs. PetroChina Co Ltd | Markor International vs. China State Construction | Markor International vs. China Railway Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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