Correlation Between Marssenger Kitchenware and New China
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By analyzing existing cross correlation between Marssenger Kitchenware Co and New China Life, you can compare the effects of market volatilities on Marssenger Kitchenware and New China 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 Marssenger Kitchenware with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marssenger Kitchenware and New China.
Diversification Opportunities for Marssenger Kitchenware and New China
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marssenger and New is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Marssenger Kitchenware Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Marssenger Kitchenware 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 Marssenger Kitchenware Co are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Marssenger Kitchenware i.e., Marssenger Kitchenware and New China go up and down completely randomly.
Pair Corralation between Marssenger Kitchenware and New China
Assuming the 90 days trading horizon Marssenger Kitchenware Co is expected to generate 1.67 times more return on investment than New China. However, Marssenger Kitchenware is 1.67 times more volatile than New China Life. It trades about 0.14 of its potential returns per unit of risk. New China Life is currently generating about 0.18 per unit of risk. If you would invest 1,381 in Marssenger Kitchenware Co on September 24, 2024 and sell it today you would earn a total of 139.00 from holding Marssenger Kitchenware Co or generate 10.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Marssenger Kitchenware Co vs. New China Life
Performance |
Timeline |
Marssenger Kitchenware |
New China Life |
Marssenger Kitchenware and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marssenger Kitchenware and New China
The main advantage of trading using opposite Marssenger Kitchenware and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marssenger Kitchenware position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. China Construction Bank |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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