Correlation Between Metallurgical and Xiangtan Electrochemical
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By analyzing existing cross correlation between Metallurgical of and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Metallurgical and Xiangtan Electrochemical 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 Metallurgical with a short position of Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Xiangtan Electrochemical.
Diversification Opportunities for Metallurgical and Xiangtan Electrochemical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metallurgical and Xiangtan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical and Metallurgical 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 Metallurgical of are associated (or correlated) with Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Metallurgical i.e., Metallurgical and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Metallurgical and Xiangtan Electrochemical
Assuming the 90 days trading horizon Metallurgical of is expected to generate 0.81 times more return on investment than Xiangtan Electrochemical. However, Metallurgical of is 1.24 times less risky than Xiangtan Electrochemical. It trades about -0.3 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about -0.45 per unit of risk. If you would invest 340.00 in Metallurgical of on October 11, 2024 and sell it today you would lose (29.00) from holding Metallurgical of or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metallurgical of vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Metallurgical |
| Xiangtan Electrochemical |
Metallurgical and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metallurgical and Xiangtan Electrochemical
The main advantage of trading using opposite Metallurgical and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Metallurgical vs. Fibocom Wireless | Metallurgical vs. Fujian Longzhou Transportation | Metallurgical vs. Nanjing Putian Telecommunications | Metallurgical vs. Zhengping RoadBridge Constr |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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