Correlation Between Malion New and Baoshan Iron
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By analyzing existing cross correlation between Malion New Materials and Baoshan Iron Steel, you can compare the effects of market volatilities on Malion New and Baoshan Iron 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 Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Baoshan Iron.
Diversification Opportunities for Malion New and Baoshan Iron
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Malion and Baoshan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel 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 Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Malion New i.e., Malion New and Baoshan Iron go up and down completely randomly.
Pair Corralation between Malion New and Baoshan Iron
Assuming the 90 days trading horizon Malion New is expected to generate 1.03 times less return on investment than Baoshan Iron. In addition to that, Malion New is 1.33 times more volatile than Baoshan Iron Steel. It trades about 0.14 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.19 per unit of volatility. If you would invest 655.00 in Baoshan Iron Steel on December 11, 2024 and sell it today you would earn a total of 83.00 from holding Baoshan Iron Steel or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Baoshan Iron Steel
Performance |
| Timeline |
| Malion New Materials |
| Baoshan Iron Steel |
Malion New and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Baoshan Iron
The main advantage of trading using opposite Malion New and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Malion New vs. Postal Savings Bank | Malion New vs. Linkage Software Co | Malion New vs. Jiangsu Yueda Investment | Malion New vs. Fujian Boss Software |
| Baoshan Iron vs. Shuhua Sports Co | Baoshan Iron vs. Weihai Honglin Electronic | Baoshan Iron vs. Aurora Optoelectronics Co | Baoshan Iron vs. Jiangsu Jinling Sports |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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