Correlation Between Markor International and Dongguan Tarry
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By analyzing existing cross correlation between Markor International Home and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Markor International and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markor International and Dongguan Tarry.
Diversification Opportunities for Markor International and Dongguan Tarry
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Markor and Dongguan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Markor International Home and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Markor International i.e., Markor International and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Markor International and Dongguan Tarry
Assuming the 90 days trading horizon Markor International is expected to generate 1.39 times less return on investment than Dongguan Tarry. But when comparing it to its historical volatility, Markor International Home is 1.05 times less risky than Dongguan Tarry. It trades about 0.16 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,095 in Dongguan Tarry Electronics on September 25, 2024 and sell it today you would earn a total of 3,015 from holding Dongguan Tarry Electronics or generate 73.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Markor International Home vs. Dongguan Tarry Electronics
Performance |
Timeline |
Markor International Home |
Dongguan Tarry Elect |
Markor International and Dongguan Tarry Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Markor International and Dongguan Tarry
The main advantage of trading using opposite Markor International and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markor International position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry'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 |
Dongguan Tarry vs. Bank of China | Dongguan Tarry vs. Kweichow Moutai Co | Dongguan Tarry vs. PetroChina Co Ltd | Dongguan Tarry vs. Bank of Communications |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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