Correlation Between Mitsubishi Gas and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both Mitsubishi Gas and ANGANG STEEL 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 Mitsubishi Gas and ANGANG STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi Gas Chemical and ANGANG STEEL H , you can compare the effects of market volatilities on Mitsubishi Gas and ANGANG STEEL 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 Mitsubishi Gas with a short position of ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi Gas and ANGANG STEEL.
Diversification Opportunities for Mitsubishi Gas and ANGANG STEEL
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitsubishi and ANGANG is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi Gas Chemical and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H and Mitsubishi Gas 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 Mitsubishi Gas Chemical are associated (or correlated) with ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of Mitsubishi Gas i.e., Mitsubishi Gas and ANGANG STEEL go up and down completely randomly.
Pair Corralation between Mitsubishi Gas and ANGANG STEEL
Assuming the 90 days trading horizon Mitsubishi Gas Chemical is expected to generate 0.5 times more return on investment than ANGANG STEEL. However, Mitsubishi Gas Chemical is 1.99 times less risky than ANGANG STEEL. It trades about 0.03 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about -0.23 per unit of risk. If you would invest 1,650 in Mitsubishi Gas Chemical on October 15, 2024 and sell it today you would earn a total of 10.00 from holding Mitsubishi Gas Chemical or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi Gas Chemical vs. ANGANG STEEL H
Performance |
| Timeline |
| Mitsubishi Gas Chemical |
| ANGANG STEEL H |
Mitsubishi Gas and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi Gas and ANGANG STEEL
The main advantage of trading using opposite Mitsubishi Gas and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi Gas position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL's long position.| Mitsubishi Gas vs. Forsys Metals Corp | Mitsubishi Gas vs. T MOBILE US | Mitsubishi Gas vs. SALESFORCE INC CDR | Mitsubishi Gas vs. CODERE ONLINE LUX |
| ANGANG STEEL vs. PTT Global Chemical | ANGANG STEEL vs. Sanyo Chemical Industries | ANGANG STEEL vs. Mitsubishi Gas Chemical | ANGANG STEEL vs. INTERSHOP Communications Aktiengesellschaft |
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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