Correlation Between Maanshan Iron and Fluent
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on Maanshan Iron and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and Fluent.
Diversification Opportunities for Maanshan Iron and Fluent
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maanshan and Fluent is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and Fluent go up and down completely randomly.
Pair Corralation between Maanshan Iron and Fluent
Assuming the 90 days horizon Maanshan Iron Steel is expected to generate 0.79 times more return on investment than Fluent. However, Maanshan Iron Steel is 1.27 times less risky than Fluent. It trades about -0.01 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.01 per unit of risk. If you would invest 21.00 in Maanshan Iron Steel on September 3, 2024 and sell it today you would lose (9.00) from holding Maanshan Iron Steel or give up 42.86% 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. Fluent Inc
Performance |
| Timeline |
| Maanshan Iron Steel |
| Fluent Inc |
Maanshan Iron and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and Fluent
The main advantage of trading using opposite Maanshan Iron and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Maanshan Iron vs. Ta Chen Stainless | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Nucor Corp |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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