Correlation Between Maanshan Iron and RadNet
Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and RadNet 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 RadNet 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 RadNet Inc, you can compare the effects of market volatilities on Maanshan Iron and RadNet 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 RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and RadNet.
Diversification Opportunities for Maanshan Iron and RadNet
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maanshan and RadNet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet 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 RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and RadNet go up and down completely randomly.
Pair Corralation between Maanshan Iron and RadNet
Assuming the 90 days horizon Maanshan Iron Steel is expected to under-perform the RadNet. But the pink sheet apears to be less risky and, when comparing its historical volatility, Maanshan Iron Steel is 1.02 times less risky than RadNet. The pink sheet trades about -0.22 of its potential returns per unit of risk. The RadNet Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 6,504 in RadNet Inc on September 1, 2024 and sell it today you would earn a total of 1,672 from holding RadNet Inc or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maanshan Iron Steel vs. RadNet Inc
Performance |
| Timeline |
| Maanshan Iron Steel |
| RadNet Inc |
Maanshan Iron and RadNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and RadNet
The main advantage of trading using opposite Maanshan Iron and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Steel Dynamics | Maanshan Iron vs. Universal Stainless Alloy |
| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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