Correlation Between Liaoning Chengda and Mango Excellent
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By analyzing existing cross correlation between Liaoning Chengda Biotechnology and Mango Excellent Media, you can compare the effects of market volatilities on Liaoning Chengda and Mango Excellent 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 Liaoning Chengda with a short position of Mango Excellent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Chengda and Mango Excellent.
Diversification Opportunities for Liaoning Chengda and Mango Excellent
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liaoning and Mango is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Chengda Biotechnology and Mango Excellent Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Excellent Media and Liaoning Chengda 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 Liaoning Chengda Biotechnology are associated (or correlated) with Mango Excellent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Excellent Media has no effect on the direction of Liaoning Chengda i.e., Liaoning Chengda and Mango Excellent go up and down completely randomly.
Pair Corralation between Liaoning Chengda and Mango Excellent
Assuming the 90 days trading horizon Liaoning Chengda Biotechnology is expected to under-perform the Mango Excellent. But the stock apears to be less risky and, when comparing its historical volatility, Liaoning Chengda Biotechnology is 1.88 times less risky than Mango Excellent. The stock trades about -0.02 of its potential returns per unit of risk. The Mango Excellent Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,069 in Mango Excellent Media on October 16, 2024 and sell it today you would lose (430.00) from holding Mango Excellent Media or give up 14.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Chengda Biotechnology vs. Mango Excellent Media
Performance |
| Timeline |
| Liaoning Chengda Bio |
| Mango Excellent Media |
Liaoning Chengda and Mango Excellent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Chengda and Mango Excellent
The main advantage of trading using opposite Liaoning Chengda and Mango Excellent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Chengda position performs unexpectedly, Mango Excellent 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 Mango Excellent will offset losses from the drop in Mango Excellent's long position.| Liaoning Chengda vs. Jiangnan Mould Plastic | Liaoning Chengda vs. Orinko Advanced Plastics | Liaoning Chengda vs. King Strong New Material | Liaoning Chengda vs. Jiangsu Jinling Sports |
| Mango Excellent vs. Yili Chuanning Biotechnology | Mango Excellent vs. Heren Health Co | Mango Excellent vs. PKU HealthCare Corp | Mango Excellent vs. Healthcare 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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