Correlation Between Maanshan Iron and FitLife Brands,
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and FitLife Brands, 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 FitLife Brands, 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 FitLife Brands, Common, you can compare the effects of market volatilities on Maanshan Iron and FitLife Brands, 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 FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and FitLife Brands,.
Diversification Opportunities for Maanshan Iron and FitLife Brands,
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maanshan and FitLife is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common 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 FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and FitLife Brands, go up and down completely randomly.
Pair Corralation between Maanshan Iron and FitLife Brands,
Assuming the 90 days horizon Maanshan Iron Steel is expected to under-perform the FitLife Brands,. In addition to that, Maanshan Iron is 1.67 times more volatile than FitLife Brands, Common. It trades about 0.0 of its total potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.08 per unit of volatility. If you would invest 2,033 in FitLife Brands, Common on September 5, 2024 and sell it today you would earn a total of 1,265 from holding FitLife Brands, Common or generate 62.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Maanshan Iron Steel vs. FitLife Brands, Common
Performance |
| Timeline |
| Maanshan Iron Steel |
| FitLife Brands, Common |
Maanshan Iron and FitLife Brands, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and FitLife Brands,
The main advantage of trading using opposite Maanshan Iron and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, FitLife Brands, 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 FitLife Brands, will offset losses from the drop in FitLife Brands,'s long position.| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings |
| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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