Correlation Between China State and Markor International
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By analyzing existing cross correlation between China State Construction and Markor International Home, you can compare the effects of market volatilities on China State 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 State with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Markor International.
Diversification Opportunities for China State and Markor International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Markor is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 State 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 State Construction 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 State i.e., China State and Markor International go up and down completely randomly.
Pair Corralation between China State and Markor International
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Markor International. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.53 times less risky than Markor International. The stock trades about -0.03 of its potential returns per unit of risk. The Markor International Home is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Markor International Home on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Markor International Home or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Markor International Home
Performance |
| Timeline |
| China State Construction |
| Markor International Home |
China State and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Markor International
The main advantage of trading using opposite China State and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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 State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| Markor International vs. Shanghai Yaoji Playing | Markor International vs. YLZ Information Tech | Markor International vs. Longmaster Information Tech | Markor International vs. Beijing Jiaman Dress |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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