Correlation Between Xiandai Investment and Marssenger Kitchenware
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By analyzing existing cross correlation between Xiandai Investment Co and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Xiandai Investment and Marssenger Kitchenware 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 Xiandai Investment with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Marssenger Kitchenware.
Diversification Opportunities for Xiandai Investment and Marssenger Kitchenware
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Marssenger is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Xiandai Investment and Marssenger Kitchenware
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 1.21 times less return on investment than Marssenger Kitchenware. But when comparing it to its historical volatility, Xiandai Investment Co is 1.85 times less risky than Marssenger Kitchenware. It trades about 0.12 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,220 in Marssenger Kitchenware Co on September 25, 2024 and sell it today you would earn a total of 205.00 from holding Marssenger Kitchenware Co or generate 16.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xiandai Investment Co vs. Marssenger Kitchenware Co
Performance |
Timeline |
Xiandai Investment |
Marssenger Kitchenware |
Xiandai Investment and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiandai Investment and Marssenger Kitchenware
The main advantage of trading using opposite Xiandai Investment and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.Xiandai Investment vs. Guangzhou Tinci Materials | Xiandai Investment vs. Guangzhou Haige Communications | Xiandai Investment vs. Fuda Alloy Materials | Xiandai Investment vs. GRIPM Advanced Materials |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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