Correlation Between Lutian Machinery and Markor International
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By analyzing existing cross correlation between Lutian Machinery Co and Markor International Home, you can compare the effects of market volatilities on Lutian Machinery 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 Lutian Machinery with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Markor International.
Diversification Opportunities for Lutian Machinery and Markor International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Markor is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co 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 Lutian Machinery 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 Lutian Machinery Co 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 Lutian Machinery i.e., Lutian Machinery and Markor International go up and down completely randomly.
Pair Corralation between Lutian Machinery and Markor International
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.73 times more return on investment than Markor International. However, Lutian Machinery Co is 1.37 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 0.0 per unit of risk. If you would invest 1,473 in Lutian Machinery Co on September 13, 2024 and sell it today you would earn a total of 129.00 from holding Lutian Machinery Co or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lutian Machinery Co vs. Markor International Home
Performance |
| Timeline |
| Lutian Machinery |
| Markor International Home |
Lutian Machinery and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Markor International
The main advantage of trading using opposite Lutian Machinery and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery 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.| Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Kweichow Moutai Co | Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. China Mobile Limited |
| Markor International vs. Tianjin Silvery Dragon | Markor International vs. Xinjiang Baodi Mining | Markor International vs. Shanghai Rendu Biotechnology | Markor International vs. Yili Chuanning Biotechnology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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