Correlation Between Markor International and Ningbo Ligong
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By analyzing existing cross correlation between Markor International Home and Ningbo Ligong Online, you can compare the effects of market volatilities on Markor International and Ningbo Ligong 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 Markor International with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Ningbo Ligong.
Diversification Opportunities for Markor International and Ningbo Ligong
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Markor and Ningbo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Markor International 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 Markor International Home are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Markor International i.e., Markor International and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Markor International and Ningbo Ligong
Assuming the 90 days trading horizon Markor International Home is expected to under-perform the Ningbo Ligong. In addition to that, Markor International is 1.29 times more volatile than Ningbo Ligong Online. It trades about -0.02 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.03 per unit of volatility. If you would invest 1,173 in Ningbo Ligong Online on September 25, 2024 and sell it today you would earn a total of 129.00 from holding Ningbo Ligong Online or generate 11.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Markor International Home vs. Ningbo Ligong Online
Performance |
Timeline |
Markor International Home |
Ningbo Ligong Online |
Markor International and Ningbo Ligong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Markor International and Ningbo Ligong
The main advantage of trading using opposite Markor International and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.Markor International vs. Agricultural Bank of | Markor International vs. Industrial and Commercial | Markor International vs. Bank of China | Markor International 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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