Correlation Between Maanshan Iron and LEGGETT
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By analyzing existing cross correlation between Maanshan Iron Steel and LEGGETT PLATT INC, you can compare the effects of market volatilities on Maanshan Iron and LEGGETT 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 LEGGETT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and LEGGETT.
Diversification Opportunities for Maanshan Iron and LEGGETT
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maanshan and LEGGETT is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and LEGGETT PLATT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEGGETT PLATT 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 LEGGETT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEGGETT PLATT INC has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and LEGGETT go up and down completely randomly.
Pair Corralation between Maanshan Iron and LEGGETT
Assuming the 90 days horizon Maanshan Iron Steel is expected to under-perform the LEGGETT. But the pink sheet apears to be less risky and, when comparing its historical volatility, Maanshan Iron Steel is 12.96 times less risky than LEGGETT. The pink sheet trades about -0.01 of its potential returns per unit of risk. The LEGGETT PLATT INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,282 in LEGGETT PLATT INC on September 4, 2024 and sell it today you would earn a total of 129.00 from holding LEGGETT PLATT INC or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.17% |
| Values | Daily Returns |
Maanshan Iron Steel vs. LEGGETT PLATT INC
Performance |
| Timeline |
| Maanshan Iron Steel |
| LEGGETT PLATT INC |
Maanshan Iron and LEGGETT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and LEGGETT
The main advantage of trading using opposite Maanshan Iron and LEGGETT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, LEGGETT 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 LEGGETT will offset losses from the drop in LEGGETT's long position.| Maanshan Iron vs. Ta Chen Stainless | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Nucor Corp |
| LEGGETT vs. The Travelers Companies | LEGGETT vs. GE Aerospace | LEGGETT vs. Walmart | LEGGETT vs. Pfizer Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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