Correlation Between Airports and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Airports and Maanshan Iron at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Airports and Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airports of Thailand and Maanshan Iron Steel, you can compare the effects of market volatilities on Airports and Maanshan Iron 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 Airports with a short position of Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Maanshan Iron.
Diversification Opportunities for Airports and Maanshan Iron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airports and Maanshan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel and Airports 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 Airports of Thailand are associated (or correlated) with Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Airports i.e., Airports and Maanshan Iron go up and down completely randomly.
Pair Corralation between Airports and Maanshan Iron
If you would invest (100.00) in Airports of Thailand on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Airports of Thailand or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Airports of Thailand vs. Maanshan Iron Steel
Performance |
| Timeline |
| Airports of Thailand |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Maanshan Iron Steel |
Airports and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Maanshan Iron
The main advantage of trading using opposite Airports and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| Airports vs. Merit Medical Systems | Airports vs. Uber Technologies | Airports vs. Centessa Pharmaceuticals PLC | Airports vs. Neogen |
| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |