Correlation Between Xinke Material and Miracll Chemicals
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By analyzing existing cross correlation between Xinke Material and Miracll Chemicals Co, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Miracll Chemicals.
Diversification Opportunities for Xinke Material and Miracll Chemicals
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinke and Miracll is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Xinke Material and Miracll Chemicals
Assuming the 90 days trading horizon Xinke Material is expected to generate 1.46 times less return on investment than Miracll Chemicals. But when comparing it to its historical volatility, Xinke Material is 1.78 times less risky than Miracll Chemicals. It trades about 0.15 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,656 in Miracll Chemicals Co on August 29, 2024 and sell it today you would earn a total of 182.00 from holding Miracll Chemicals Co or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Miracll Chemicals Co
Performance |
| Timeline |
| Xinke Material |
| Miracll Chemicals |
Xinke Material and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Miracll Chemicals
The main advantage of trading using opposite Xinke Material and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining | Miracll Chemicals vs. Rongsheng Petrochemical Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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