Correlation Between Advanced Technology and Malion New
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By analyzing existing cross correlation between Advanced Technology Materials and Malion New Materials, you can compare the effects of market volatilities on Advanced Technology and Malion New 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 Advanced Technology with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Malion New.
Diversification Opportunities for Advanced Technology and Malion New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Malion is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials and Advanced Technology 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 Advanced Technology Materials are associated (or correlated) with Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Advanced Technology i.e., Advanced Technology and Malion New go up and down completely randomly.
Pair Corralation between Advanced Technology and Malion New
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 0.91 times more return on investment than Malion New. However, Advanced Technology Materials is 1.1 times less risky than Malion New. It trades about 0.33 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.09 per unit of risk. If you would invest 1,026 in Advanced Technology Materials on August 25, 2024 and sell it today you would earn a total of 289.00 from holding Advanced Technology Materials or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. Malion New Materials
Performance |
| Timeline |
| Advanced Technology |
| Malion New Materials |
Advanced Technology and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and Malion New
The main advantage of trading using opposite Advanced Technology and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Shandong Gold Mining | Advanced Technology vs. Inner Mongolia BaoTou |
| Malion New vs. Sunny Loan Top | Malion New vs. Hunan Investment Group | Malion New vs. Tieling Newcity Investment | Malion New vs. Harbin Hatou 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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