Correlation Between Maanshan Iron and 92826CAH5
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By analyzing existing cross correlation between Maanshan Iron Steel and VISA INC 275, you can compare the effects of market volatilities on Maanshan Iron and 92826CAH5 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 92826CAH5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and 92826CAH5.
Diversification Opportunities for Maanshan Iron and 92826CAH5
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maanshan and 92826CAH5 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and VISA INC 275 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VISA INC 275 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 92826CAH5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VISA INC 275 has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and 92826CAH5 go up and down completely randomly.
Pair Corralation between Maanshan Iron and 92826CAH5
Assuming the 90 days horizon Maanshan Iron Steel is expected to under-perform the 92826CAH5. In addition to that, Maanshan Iron is 8.6 times more volatile than VISA INC 275. It trades about -0.22 of its total potential returns per unit of risk. VISA INC 275 is currently generating about -0.24 per unit of volatility. If you would invest 9,611 in VISA INC 275 on September 1, 2024 and sell it today you would lose (213.00) from holding VISA INC 275 or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Maanshan Iron Steel vs. VISA INC 275
Performance |
| Timeline |
| Maanshan Iron Steel |
| VISA INC 275 |
Maanshan Iron and 92826CAH5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maanshan Iron and 92826CAH5
The main advantage of trading using opposite Maanshan Iron and 92826CAH5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, 92826CAH5 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 92826CAH5 will offset losses from the drop in 92826CAH5's long position.| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Steel Dynamics | Maanshan Iron vs. Universal Stainless Alloy |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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