Correlation Between Xilinmen Furniture and Malion New
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By analyzing existing cross correlation between Xilinmen Furniture Co and Malion New Materials, you can compare the effects of market volatilities on Xilinmen Furniture and Malion New 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 Xilinmen Furniture with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Malion New.
Diversification Opportunities for Xilinmen Furniture and Malion New
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xilinmen and Malion is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials and Xilinmen Furniture 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 Xilinmen Furniture Co are associated (or correlated) with Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and Malion New go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Malion New
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Xilinmen Furniture Co is 1.38 times less risky than Malion New. The stock trades about -0.02 of its potential returns per unit of risk. The Malion New Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 732.00 in Malion New Materials on November 28, 2024 and sell it today you would earn a total of 142.00 from holding Malion New Materials or generate 19.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Malion New Materials
Performance |
| Timeline |
| Xilinmen Furniture |
| Malion New Materials |
Xilinmen Furniture and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Malion New
The main advantage of trading using opposite Xilinmen Furniture and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Xilinmen Furniture vs. HaiXin Foods Co | Xilinmen Furniture vs. Sportsoul Co Ltd | Xilinmen Furniture vs. Citic Offshore Helicopter | Xilinmen Furniture vs. Xiwang Foodstuffs Co |
| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New vs. Shandong Gold Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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