Correlation Between Masterwork Machinery and China Building
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By analyzing existing cross correlation between Masterwork Machinery and China Building Material, you can compare the effects of market volatilities on Masterwork Machinery and China Building 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 Masterwork Machinery with a short position of China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and China Building.
Diversification Opportunities for Masterwork Machinery and China Building
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Masterwork and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material and Masterwork 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 Masterwork Machinery are associated (or correlated) with China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and China Building go up and down completely randomly.
Pair Corralation between Masterwork Machinery and China Building
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 1.59 times more return on investment than China Building. However, Masterwork Machinery is 1.59 times more volatile than China Building Material. It trades about 0.02 of its potential returns per unit of risk. China Building Material is currently generating about 0.01 per unit of risk. If you would invest 563.00 in Masterwork Machinery on October 27, 2024 and sell it today you would earn a total of 7.00 from holding Masterwork Machinery or generate 1.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Masterwork Machinery vs. China Building Material
Performance |
Timeline |
Masterwork Machinery |
China Building Material |
Masterwork Machinery and China Building Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Masterwork Machinery and China Building
The main advantage of trading using opposite Masterwork Machinery and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.Masterwork Machinery vs. Hainan Haiqi Transportation | Masterwork Machinery vs. Shenyang Blue Silver | Masterwork Machinery vs. JCHX Mining Management | Masterwork Machinery vs. Shengda Mining Co |
China Building vs. Agricultural Bank of | China Building vs. Industrial and Commercial | China Building vs. Bank of China | China Building vs. PetroChina Co Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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