Correlation Between Mango Excellent and Shanxi Lanhua
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By analyzing existing cross correlation between Mango Excellent Media and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Mango Excellent and Shanxi Lanhua 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 Mango Excellent with a short position of Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Excellent and Shanxi Lanhua.
Diversification Opportunities for Mango Excellent and Shanxi Lanhua
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mango and Shanxi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mango Excellent Media and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci and Mango Excellent 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 Mango Excellent Media are associated (or correlated) with Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Mango Excellent i.e., Mango Excellent and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Mango Excellent and Shanxi Lanhua
Assuming the 90 days trading horizon Mango Excellent Media is expected to generate 1.49 times more return on investment than Shanxi Lanhua. However, Mango Excellent is 1.49 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.2 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.02 per unit of risk. If you would invest 1,851 in Mango Excellent Media on September 2, 2024 and sell it today you would earn a total of 1,031 from holding Mango Excellent Media or generate 55.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mango Excellent Media vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Mango Excellent Media |
| Shanxi Lanhua Sci |
Mango Excellent and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mango Excellent and Shanxi Lanhua
The main advantage of trading using opposite Mango Excellent and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Excellent position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Mango Excellent vs. New China Life | Mango Excellent vs. Ming Yang Smart | Mango Excellent vs. 159681 | Mango Excellent vs. 159005 |
| Shanxi Lanhua vs. Bloomage Biotechnology Corp | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Guangdong Advertising Co | Shanxi Lanhua vs. Changchun BCHT Biotechnology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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