Correlation Between Malion New and Shandong Longquan
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By analyzing existing cross correlation between Malion New Materials and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Malion New and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Shandong Longquan.
Diversification Opportunities for Malion New and Shandong Longquan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malion and Shandong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Malion New i.e., Malion New and Shandong Longquan go up and down completely randomly.
Pair Corralation between Malion New and Shandong Longquan
Assuming the 90 days trading horizon Malion New Materials is expected to under-perform the Shandong Longquan. In addition to that, Malion New is 1.13 times more volatile than Shandong Longquan Pipeline. It trades about -0.42 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about -0.24 per unit of volatility. If you would invest 515.00 in Shandong Longquan Pipeline on October 16, 2024 and sell it today you would lose (56.00) from holding Shandong Longquan Pipeline or give up 10.87% 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. Shandong Longquan Pipeline
Performance |
| Timeline |
| Malion New Materials |
| Shandong Longquan |
Malion New and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Shandong Longquan
The main advantage of trading using opposite Malion New and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan'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 |
| Shandong Longquan vs. Miracll Chemicals Co | Shandong Longquan vs. Queclink Wireless Solutions | Shandong Longquan vs. Dymatic Chemicals | Shandong Longquan vs. Xiangyang Automobile Bearing |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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