Correlation Between Summit Environmental and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Summit Environmental and Maanshan Iron 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 Summit Environmental and Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Environmental and Maanshan Iron Steel, you can compare the effects of market volatilities on Summit Environmental and Maanshan Iron 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 Summit Environmental with a short position of Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Maanshan Iron.
Diversification Opportunities for Summit Environmental and Maanshan Iron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Maanshan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel and Summit Environmental 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 Summit Environmental are associated (or correlated) with Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Summit Environmental i.e., Summit Environmental and Maanshan Iron go up and down completely randomly.
Pair Corralation between Summit Environmental and Maanshan Iron
If you would invest 15.00 in Maanshan Iron Steel on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Maanshan Iron Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Summit Environmental vs. Maanshan Iron Steel
Performance |
| Timeline |
| Summit Environmental |
| Maanshan Iron Steel |
Summit Environmental and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Maanshan Iron
The main advantage of trading using opposite Summit Environmental and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| Summit Environmental vs. Ascendant Resources | Summit Environmental vs. Cantex Mine Development | Summit Environmental vs. Amarc Resources | Summit Environmental vs. Sterling Metals Corp |
| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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