Correlation Between Malion New and Tjk Machinery
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By analyzing existing cross correlation between Malion New Materials and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Malion New and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Tjk Machinery.
Diversification Opportunities for Malion New and Tjk Machinery
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malion and Tjk is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Malion New i.e., Malion New and Tjk Machinery go up and down completely randomly.
Pair Corralation between Malion New and Tjk Machinery
Assuming the 90 days trading horizon Malion New Materials is expected to under-perform the Tjk Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Malion New Materials is 1.45 times less risky than Tjk Machinery. The stock trades about -0.21 of its potential returns per unit of risk. The Tjk Machinery Tianjin is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,399 in Tjk Machinery Tianjin on October 18, 2024 and sell it today you would lose (122.00) from holding Tjk Machinery Tianjin or give up 8.72% 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. Tjk Machinery Tianjin
Performance |
| Timeline |
| Malion New Materials |
| Tjk Machinery Tianjin |
Malion New and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Tjk Machinery
The main advantage of trading using opposite Malion New and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New vs. Shandong Gold Mining |
| Tjk Machinery vs. Western Metal Materials | Tjk Machinery vs. Malion New Materials | Tjk Machinery vs. Fuda Alloy Materials | Tjk Machinery vs. Uroica Mining Safety |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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