Correlation Between Guizhou Chanhen and Malion New
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Malion New Materials, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Malion New.
Diversification Opportunities for Guizhou Chanhen and Malion New
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guizhou and Malion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Malion New go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Malion New
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.74 times more return on investment than Malion New. However, Guizhou Chanhen Chemical is 1.35 times less risky than Malion New. It trades about -0.03 of its potential returns per unit of risk. Malion New Materials is currently generating about -0.2 per unit of risk. If you would invest 2,302 in Guizhou Chanhen Chemical on October 30, 2024 and sell it today you would lose (62.00) from holding Guizhou Chanhen Chemical or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Malion New Materials
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Malion New Materials |
Guizhou Chanhen and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Malion New
The main advantage of trading using opposite Guizhou Chanhen and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Harbin Air Conditioning | Guizhou Chanhen vs. Jiangsu Phoenix Publishing | Guizhou Chanhen vs. Air China Ltd | Guizhou Chanhen vs. COL Digital Publishing |
| Malion New vs. Beijing Kingsoft Office | Malion New vs. Shandong Iron and | Malion New vs. Elite Color Environmental | Malion New vs. Hangzhou Guotai Environmental |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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