Correlation Between Malion New and GRIPM Advanced
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By analyzing existing cross correlation between Malion New Materials and GRIPM Advanced Materials, you can compare the effects of market volatilities on Malion New and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and GRIPM Advanced.
Diversification Opportunities for Malion New and GRIPM Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Malion and GRIPM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Malion New i.e., Malion New and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Malion New and GRIPM Advanced
Assuming the 90 days trading horizon Malion New is expected to generate 2.39 times less return on investment than GRIPM Advanced. In addition to that, Malion New is 1.41 times more volatile than GRIPM Advanced Materials. It trades about 0.03 of its total potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.08 per unit of volatility. If you would invest 2,979 in GRIPM Advanced Materials on August 30, 2024 and sell it today you would earn a total of 132.00 from holding GRIPM Advanced Materials or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Malion New Materials |
| GRIPM Advanced Materials |
Malion New and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and GRIPM Advanced
The main advantage of trading using opposite Malion New and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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