Correlation Between Maanshan Iron and ICC Holdings
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and ICC 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 ICC 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 ICC Holdings, you can compare the effects of market volatilities on Maanshan Iron and ICC 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 ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and ICC Holdings.
Diversification Opportunities for Maanshan Iron and ICC Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maanshan and ICC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC 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 ICC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICC Holdings has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and ICC Holdings go up and down completely randomly.
Pair Corralation between Maanshan Iron and ICC Holdings
If you would invest 2,299 in ICC Holdings on August 28, 2024 and sell it today you would earn a total of 11.00 from holding ICC Holdings or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Maanshan Iron Steel vs. ICC Holdings
Performance |
| Timeline |
| Maanshan Iron Steel |
| ICC Holdings |
Maanshan Iron and ICC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and ICC Holdings
The main advantage of trading using opposite Maanshan Iron and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, ICC 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 ICC Holdings will offset losses from the drop in ICC Holdings' long position.| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. Mesabi Trust | Maanshan Iron vs. Universal Stainless Alloy | Maanshan Iron vs. POSCO Holdings |
| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |