Correlation Between AJ LUCAS and MONGOLIAN MINING
Can any of the company-specific risk be diversified away by investing in both AJ LUCAS and MONGOLIAN MINING 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 AJ LUCAS and MONGOLIAN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJ LUCAS GROUP and MONGOLIAN MINING CRPREGS, you can compare the effects of market volatilities on AJ LUCAS and MONGOLIAN MINING 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 AJ LUCAS with a short position of MONGOLIAN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJ LUCAS and MONGOLIAN MINING.
Diversification Opportunities for AJ LUCAS and MONGOLIAN MINING
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FW9 and MONGOLIAN is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AJ LUCAS GROUP and MONGOLIAN MINING CRPREGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONGOLIAN MINING CRPREGS and AJ LUCAS 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 AJ LUCAS GROUP are associated (or correlated) with MONGOLIAN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONGOLIAN MINING CRPREGS has no effect on the direction of AJ LUCAS i.e., AJ LUCAS and MONGOLIAN MINING go up and down completely randomly.
Pair Corralation between AJ LUCAS and MONGOLIAN MINING
Assuming the 90 days horizon AJ LUCAS GROUP is expected to generate 9.19 times more return on investment than MONGOLIAN MINING. However, AJ LUCAS is 9.19 times more volatile than MONGOLIAN MINING CRPREGS. It trades about 0.07 of its potential returns per unit of risk. MONGOLIAN MINING CRPREGS is currently generating about -0.01 per unit of risk. If you would invest 0.15 in AJ LUCAS GROUP on September 26, 2024 and sell it today you would lose (0.10) from holding AJ LUCAS GROUP or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AJ LUCAS GROUP vs. MONGOLIAN MINING CRPREGS
Performance |
| Timeline |
| AJ LUCAS GROUP |
| MONGOLIAN MINING CRPREGS |
AJ LUCAS and MONGOLIAN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJ LUCAS and MONGOLIAN MINING
The main advantage of trading using opposite AJ LUCAS and MONGOLIAN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJ LUCAS position performs unexpectedly, MONGOLIAN MINING 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 MONGOLIAN MINING will offset losses from the drop in MONGOLIAN MINING's long position.| AJ LUCAS vs. CORONGLRES CDIS101 | AJ LUCAS vs. MONGOLIAN MINING CRPREGS | AJ LUCAS vs. PERENNIAL ENERGY HD 01 |
| MONGOLIAN MINING vs. CORONGLRES CDIS101 | MONGOLIAN MINING vs. PERENNIAL ENERGY HD 01 | MONGOLIAN MINING vs. AJ LUCAS GROUP |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |