Correlation Between 60 Degrees and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both 60 Degrees 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 60 Degrees and Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Maanshan Iron Steel, you can compare the effects of market volatilities on 60 Degrees 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 60 Degrees with a short position of Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Maanshan Iron.
Diversification Opportunities for 60 Degrees and Maanshan Iron
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SXTPW and Maanshan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, 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 60 Degrees 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 60 Degrees Pharmaceuticals, 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 60 Degrees i.e., 60 Degrees and Maanshan Iron go up and down completely randomly.
Pair Corralation between 60 Degrees and Maanshan Iron
Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 5.79 times more return on investment than Maanshan Iron. However, 60 Degrees is 5.79 times more volatile than Maanshan Iron Steel. It trades about 0.17 of its potential returns per unit of risk. Maanshan Iron Steel is currently generating about 0.06 per unit of risk. If you would invest 4.10 in 60 Degrees Pharmaceuticals, on November 3, 2024 and sell it today you would lose (0.21) from holding 60 Degrees Pharmaceuticals, or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.41% |
| Values | Daily Returns |
60 Degrees Pharmaceuticals, vs. Maanshan Iron Steel
Performance |
| Timeline |
| 60 Degrees Pharmaceu |
| Maanshan Iron Steel |
60 Degrees and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 60 Degrees and Maanshan Iron
The main advantage of trading using opposite 60 Degrees and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees 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.| 60 Degrees vs. SohuCom | 60 Degrees vs. Futuretech II Acquisition | 60 Degrees vs. Summit Hotel Properties | 60 Degrees vs. Freedom Holding Corp |
| Maanshan Iron vs. ArcelorMittal SA ADR | Maanshan Iron vs. Gerdau SA ADR | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Aquagold International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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