Correlation Between Miracll Chemicals and Hengli Industrial
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By analyzing existing cross correlation between Miracll Chemicals Co and Hengli Industrial Development, you can compare the effects of market volatilities on Miracll Chemicals and Hengli Industrial 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 Miracll Chemicals with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miracll Chemicals and Hengli Industrial.
Diversification Opportunities for Miracll Chemicals and Hengli Industrial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Miracll and Hengli is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Miracll Chemicals Co and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Miracll Chemicals 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 Miracll Chemicals Co are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Miracll Chemicals i.e., Miracll Chemicals and Hengli Industrial go up and down completely randomly.
Pair Corralation between Miracll Chemicals and Hengli Industrial
Assuming the 90 days trading horizon Miracll Chemicals is expected to generate 2.21 times less return on investment than Hengli Industrial. But when comparing it to its historical volatility, Miracll Chemicals Co is 1.21 times less risky than Hengli Industrial. It trades about 0.14 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 203.00 in Hengli Industrial Development on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Hengli Industrial Development or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miracll Chemicals Co vs. Hengli Industrial Development
Performance |
| Timeline |
| Miracll Chemicals |
| Hengli Industrial |
Miracll Chemicals and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miracll Chemicals and Hengli Industrial
The main advantage of trading using opposite Miracll Chemicals and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miracll Chemicals position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Wanhua Chemical Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining |
| Hengli Industrial vs. Xiangyang Automobile Bearing | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Tongyu Communication |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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