Correlation Between Malion New and Anhui Huilong
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By analyzing existing cross correlation between Malion New Materials and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Malion New and Anhui Huilong 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 Malion New with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Anhui Huilong.
Diversification Opportunities for Malion New and Anhui Huilong
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malion and Anhui is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Malion New 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 Malion New Materials are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Malion New i.e., Malion New and Anhui Huilong go up and down completely randomly.
Pair Corralation between Malion New and Anhui Huilong
Assuming the 90 days trading horizon Malion New Materials is expected to generate 1.37 times more return on investment than Anhui Huilong. However, Malion New is 1.37 times more volatile than Anhui Huilong Agricultural. It trades about 0.0 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.02 per unit of risk. If you would invest 1,026 in Malion New Materials on October 16, 2024 and sell it today you would lose (234.00) from holding Malion New Materials or give up 22.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Malion New Materials |
| Anhui Huilong Agricu |
Malion New and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Anhui Huilong
The main advantage of trading using opposite Malion New and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Malion New vs. Jonjee Hi tech Industrial | Malion New vs. Jinsanjiang Silicon Material | Malion New vs. Sino Platinum Metals Co | Malion New vs. Guizhou Chanhen Chemical |
| Anhui Huilong vs. Great Sun Foods Co | Anhui Huilong vs. Suzhou Weizhixiang Food | Anhui Huilong vs. Hangzhou Gaoxin Rubber | Anhui Huilong vs. Malion New Materials |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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