Correlation Between China Publishing and Markor International
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By analyzing existing cross correlation between China Publishing Media and Markor International Home, you can compare the effects of market volatilities on China Publishing 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 Publishing with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Markor International.
Diversification Opportunities for China Publishing and Markor International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Markor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media 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 Publishing 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 Publishing Media 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 Publishing i.e., China Publishing and Markor International go up and down completely randomly.
Pair Corralation between China Publishing and Markor International
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.87 times more return on investment than Markor International. However, China Publishing Media is 1.15 times less risky than Markor International. It trades about -0.02 of its potential returns per unit of risk. Markor International Home is currently generating about -0.04 per unit of risk. If you would invest 925.00 in China Publishing Media on October 28, 2024 and sell it today you would lose (227.00) from holding China Publishing Media or give up 24.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Markor International Home
Performance |
| Timeline |
| China Publishing Media |
| Markor International Home |
China Publishing and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Markor International
The main advantage of trading using opposite China Publishing and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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 Publishing vs. Bus Online Co | China Publishing vs. Holitech Technology Co | China Publishing vs. Gome Telecom Equipment | China Publishing vs. Cultural Investment Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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