Correlation Between Maanshan Iron and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and Celsius Holdings 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 Maanshan Iron and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maanshan Iron Steel and Celsius Holdings, you can compare the effects of market volatilities on Maanshan Iron and Celsius Holdings 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 Maanshan Iron with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and Celsius Holdings.
Diversification Opportunities for Maanshan Iron and Celsius Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maanshan and Celsius is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Maanshan Iron 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 Maanshan Iron Steel are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and Celsius Holdings go up and down completely randomly.
Pair Corralation between Maanshan Iron and Celsius Holdings
Assuming the 90 days horizon Maanshan Iron Steel is expected to generate 1.78 times more return on investment than Celsius Holdings. However, Maanshan Iron is 1.78 times more volatile than Celsius Holdings. It trades about 0.01 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.19 per unit of risk. If you would invest 14.00 in Maanshan Iron Steel on September 1, 2024 and sell it today you would lose (2.00) from holding Maanshan Iron Steel or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maanshan Iron Steel vs. Celsius Holdings
Performance |
| Timeline |
| Maanshan Iron Steel |
| Celsius Holdings |
Maanshan Iron and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and Celsius Holdings
The main advantage of trading using opposite Maanshan Iron and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Steel Dynamics | Maanshan Iron vs. Universal Stainless Alloy |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |