Correlation Between Crown Advanced and Malion New
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By analyzing existing cross correlation between Crown Advanced Material and Malion New Materials, you can compare the effects of market volatilities on Crown Advanced 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 Crown Advanced with a short position of Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Advanced and Malion New.
Diversification Opportunities for Crown Advanced and Malion New
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crown and Malion is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Crown Advanced Material 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 Crown Advanced 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 Crown Advanced Material 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 Crown Advanced i.e., Crown Advanced and Malion New go up and down completely randomly.
Pair Corralation between Crown Advanced and Malion New
Assuming the 90 days trading horizon Crown Advanced Material is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Crown Advanced Material is 1.18 times less risky than Malion New. The stock trades about -0.26 of its potential returns per unit of risk. The Malion New Materials is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Malion New Materials on August 28, 2024 and sell it today you would lose (25.00) from holding Malion New Materials or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Advanced Material vs. Malion New Materials
Performance |
| Timeline |
| Crown Advanced Material |
| Malion New Materials |
Crown Advanced and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Advanced and Malion New
The main advantage of trading using opposite Crown Advanced and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Advanced 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.| Crown Advanced vs. Zijin Mining Group | Crown Advanced vs. Wanhua Chemical Group | Crown Advanced vs. Baoshan Iron Steel | Crown Advanced vs. Shandong Gold Mining |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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