Correlation Between Malion New and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Malion New Materials and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Malion New and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Guangzhou Ruoyuchen.
Diversification Opportunities for Malion New and Guangzhou Ruoyuchen
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Malion and Guangzhou is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Malion New i.e., Malion New and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Malion New and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Malion New Materials is expected to generate 0.54 times more return on investment than Guangzhou Ruoyuchen. However, Malion New Materials is 1.86 times less risky than Guangzhou Ruoyuchen. It trades about -0.11 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about -0.12 per unit of risk. If you would invest 849.00 in Malion New Materials on October 30, 2024 and sell it today you would lose (46.00) from holding Malion New Materials or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Malion New Materials |
| Guangzhou Ruoyuchen |
Malion New and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Guangzhou Ruoyuchen
The main advantage of trading using opposite Malion New and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Malion New vs. Beijing Kingsoft Office | Malion New vs. Shandong Iron and | Malion New vs. Elite Color Environmental | Malion New vs. Hangzhou Guotai Environmental |
| Guangzhou Ruoyuchen vs. China Petroleum Chemical | Guangzhou Ruoyuchen vs. PetroChina Co Ltd | Guangzhou Ruoyuchen vs. China State Construction | Guangzhou Ruoyuchen vs. China Railway Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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