Correlation Between XCMG Construction and Miracll Chemicals
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By analyzing existing cross correlation between XCMG Construction Machinery and Miracll Chemicals Co, you can compare the effects of market volatilities on XCMG Construction and Miracll Chemicals 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 XCMG Construction with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Miracll Chemicals.
Diversification Opportunities for XCMG Construction and Miracll Chemicals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XCMG and Miracll is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and XCMG Construction 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 XCMG Construction Machinery are associated (or correlated) with Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of XCMG Construction i.e., XCMG Construction and Miracll Chemicals go up and down completely randomly.
Pair Corralation between XCMG Construction and Miracll Chemicals
Assuming the 90 days trading horizon XCMG Construction Machinery is expected to under-perform the Miracll Chemicals. But the stock apears to be less risky and, when comparing its historical volatility, XCMG Construction Machinery is 1.47 times less risky than Miracll Chemicals. The stock trades about -0.02 of its potential returns per unit of risk. The Miracll Chemicals Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,559 in Miracll Chemicals Co on November 9, 2024 and sell it today you would earn a total of 109.00 from holding Miracll Chemicals Co or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Miracll Chemicals Co
Performance |
| Timeline |
| XCMG Construction |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Miracll Chemicals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
XCMG Construction and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Miracll Chemicals
The main advantage of trading using opposite XCMG Construction and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.The idea behind XCMG Construction Machinery and Miracll Chemicals Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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