Correlation Between Shandong Hongchuang and Miracll Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Miracll Chemicals Co, you can compare the effects of market volatilities on Shandong Hongchuang and Miracll Chemicals 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 Shandong Hongchuang with a short position of Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Miracll Chemicals.
Diversification Opportunities for Shandong Hongchuang and Miracll Chemicals
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Miracll is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals and Shandong Hongchuang 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 Shandong Hongchuang Aluminum are associated (or correlated) with Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Shandong Hongchuang i.e., Shandong Hongchuang and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Miracll Chemicals
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.59 times more return on investment than Miracll Chemicals. However, Shandong Hongchuang is 1.59 times more volatile than Miracll Chemicals Co. It trades about 0.45 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about -0.28 per unit of risk. If you would invest 682.00 in Shandong Hongchuang Aluminum on September 25, 2024 and sell it today you would earn a total of 215.00 from holding Shandong Hongchuang Aluminum or generate 31.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Miracll Chemicals Co
Performance |
Timeline |
Shandong Hongchuang |
Miracll Chemicals |
Shandong Hongchuang and Miracll Chemicals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Hongchuang and Miracll Chemicals
The main advantage of trading using opposite Shandong Hongchuang and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.Shandong Hongchuang vs. Wanhua Chemical Group | Shandong Hongchuang vs. Shandong Gold Mining | Shandong Hongchuang vs. Rongsheng Petrochemical Co | Shandong Hongchuang vs. Inner Mongolia BaoTou |
Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining | Miracll Chemicals vs. Rongsheng Petrochemical Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |