Correlation Between Malion New and Zhejiang Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Malion New Materials and Zhejiang Construction Investment, you can compare the effects of market volatilities on Malion New and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Zhejiang Construction.
Diversification Opportunities for Malion New and Zhejiang Construction
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Malion and Zhejiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Malion New i.e., Malion New and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Malion New and Zhejiang Construction
Assuming the 90 days trading horizon Malion New Materials is expected to generate 1.15 times more return on investment than Zhejiang Construction. However, Malion New is 1.15 times more volatile than Zhejiang Construction Investment. It trades about -0.03 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.06 per unit of risk. If you would invest 1,474 in Malion New Materials on October 12, 2024 and sell it today you would lose (722.00) from holding Malion New Materials or give up 48.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Malion New Materials vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Malion New Materials |
| Zhejiang Construction |
Malion New and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Zhejiang Construction
The main advantage of trading using opposite Malion New and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Malion New vs. Tangel Publishing | Malion New vs. Changjiang Publishing Media | Malion New vs. Jiangsu Phoenix Publishing | Malion New vs. Shanghai Yaoji Playing |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |