Correlation Between GRG Banking and Miracll Chemicals
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By analyzing existing cross correlation between GRG Banking Equipment and Miracll Chemicals Co, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Miracll Chemicals.
Diversification Opportunities for GRG Banking and Miracll Chemicals
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Miracll is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Miracll Chemicals go up and down completely randomly.
Pair Corralation between GRG Banking and Miracll Chemicals
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Miracll Chemicals. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.21 times less risky than Miracll Chemicals. The stock trades about -0.04 of its potential returns per unit of risk. The Miracll Chemicals Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,478 in Miracll Chemicals Co on October 14, 2024 and sell it today you would earn a total of 25.00 from holding Miracll Chemicals Co or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Miracll Chemicals Co
Performance |
| Timeline |
| GRG Banking Equipment |
| Miracll Chemicals |
GRG Banking and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Miracll Chemicals
The main advantage of trading using opposite GRG Banking and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Shanghai Sanyou Medical | GRG Banking vs. Guangdong Transtek Medical | GRG Banking vs. Dazhong Transportation Group | GRG Banking vs. Nanjing Vishee Medical |
| Miracll Chemicals vs. GRG Banking Equipment | Miracll Chemicals vs. China Asset Management | Miracll Chemicals vs. Cicc Fund Management | Miracll Chemicals vs. Chongqing Brewery Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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