Correlation Between Maniker F and Choil Aluminum
Can any of the company-specific risk be diversified away by investing in both Maniker F and Choil Aluminum at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Maniker F and Choil Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maniker F G and Choil Aluminum, you can compare the effects of market volatilities on Maniker F and Choil Aluminum 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 Maniker F with a short position of Choil Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maniker F and Choil Aluminum.
Diversification Opportunities for Maniker F and Choil Aluminum
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maniker and Choil is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Maniker F G and Choil Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choil Aluminum and Maniker F 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 Maniker F G are associated (or correlated) with Choil Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choil Aluminum has no effect on the direction of Maniker F i.e., Maniker F and Choil Aluminum go up and down completely randomly.
Pair Corralation between Maniker F and Choil Aluminum
Assuming the 90 days trading horizon Maniker F G is expected to generate 0.69 times more return on investment than Choil Aluminum. However, Maniker F G is 1.45 times less risky than Choil Aluminum. It trades about -0.04 of its potential returns per unit of risk. Choil Aluminum is currently generating about -0.09 per unit of risk. If you would invest 293,500 in Maniker F G on September 2, 2024 and sell it today you would lose (14,000) from holding Maniker F G or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maniker F G vs. Choil Aluminum
Performance |
| Timeline |
| Maniker F G |
| Choil Aluminum |
Maniker F and Choil Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maniker F and Choil Aluminum
The main advantage of trading using opposite Maniker F and Choil Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maniker F position performs unexpectedly, Choil Aluminum 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 Choil Aluminum will offset losses from the drop in Choil Aluminum's long position.| Maniker F vs. Samsung Electronics Co | Maniker F vs. Samsung Electronics Co | Maniker F vs. LG Energy Solution | Maniker F vs. SK Hynix |
| Choil Aluminum vs. Busan Industrial Co | Choil Aluminum vs. Busan Ind | Choil Aluminum vs. Mirae Asset Daewoo | Choil Aluminum vs. Finebesteel |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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