Correlation Between Baoshan Iron and Miracll Chemicals
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By analyzing existing cross correlation between Baoshan Iron Steel and Miracll Chemicals Co, you can compare the effects of market volatilities on Baoshan Iron and Miracll Chemicals 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 Baoshan Iron with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Miracll Chemicals.
Diversification Opportunities for Baoshan Iron and Miracll Chemicals
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baoshan and Miracll is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and Baoshan Iron 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 Baoshan Iron Steel are associated (or correlated) with Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Baoshan Iron and Miracll Chemicals
Assuming the 90 days trading horizon Baoshan Iron is expected to generate 4.33 times less return on investment than Miracll Chemicals. But when comparing it to its historical volatility, Baoshan Iron Steel is 1.24 times less risky than Miracll Chemicals. It trades about 0.07 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,535 in Miracll Chemicals Co on November 4, 2024 and sell it today you would earn a total of 142.00 from holding Miracll Chemicals Co or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Miracll Chemicals Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| Miracll Chemicals |
Baoshan Iron and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Miracll Chemicals
The main advantage of trading using opposite Baoshan Iron and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.| Baoshan Iron vs. Senci Electric Machinery | Baoshan Iron vs. Allied Machinery Co | Baoshan Iron vs. Anhui Huaren Health | Baoshan Iron vs. Lotus Health Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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