Correlation Between Chernan Metal and Inmax Holding
Can any of the company-specific risk be diversified away by investing in both Chernan Metal and Inmax Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chernan Metal and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chernan Metal Industrial and Inmax Holding Co, you can compare the effects of market volatilities on Chernan Metal and Inmax Holding 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 Chernan Metal with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chernan Metal and Inmax Holding.
Diversification Opportunities for Chernan Metal and Inmax Holding
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chernan and Inmax is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chernan Metal Industrial and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and Chernan Metal 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 Chernan Metal Industrial are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of Chernan Metal i.e., Chernan Metal and Inmax Holding go up and down completely randomly.
Pair Corralation between Chernan Metal and Inmax Holding
Assuming the 90 days trading horizon Chernan Metal is expected to generate 10.97 times less return on investment than Inmax Holding. But when comparing it to its historical volatility, Chernan Metal Industrial is 1.28 times less risky than Inmax Holding. It trades about 0.01 of its potential returns per unit of risk. Inmax Holding Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,680 in Inmax Holding Co on September 3, 2024 and sell it today you would earn a total of 3,680 from holding Inmax Holding Co or generate 219.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chernan Metal Industrial vs. Inmax Holding Co
Performance |
| Timeline |
| Chernan Metal Industrial |
| Inmax Holding |
Chernan Metal and Inmax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chernan Metal and Inmax Holding
The main advantage of trading using opposite Chernan Metal and Inmax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chernan Metal position performs unexpectedly, Inmax Holding 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 Inmax Holding will offset losses from the drop in Inmax Holding's long position.| Chernan Metal vs. Catcher Technology Co | Chernan Metal vs. Evergreen Steel Corp | Chernan Metal vs. China Metal Products |
| Inmax Holding vs. RiTdisplay Corp | Inmax Holding vs. Medigen Biotechnology | Inmax Holding vs. PlayNitride | Inmax Holding vs. Chernan Metal Industrial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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