Correlation Between Inner Mongolia and Advanced Technology
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Advanced Technology Materials, you can compare the effects of market volatilities on Inner Mongolia and Advanced Technology 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 Inner Mongolia with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Advanced Technology.
Diversification Opportunities for Inner Mongolia and Advanced Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inner and Advanced is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Advanced Technology go up and down completely randomly.
Pair Corralation between Inner Mongolia and Advanced Technology
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to under-perform the Advanced Technology. But the stock apears to be less risky and, when comparing its historical volatility, Inner Mongolia BaoTou is 1.33 times less risky than Advanced Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Advanced Technology Materials is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Advanced Technology Materials on October 5, 2024 and sell it today you would earn a total of 204.00 from holding Advanced Technology Materials or generate 23.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Inner Mongolia BaoTou vs. Advanced Technology Materials
Performance |
Timeline |
Inner Mongolia BaoTou |
Advanced Technology |
Inner Mongolia and Advanced Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inner Mongolia and Advanced Technology
The main advantage of trading using opposite Inner Mongolia and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.Inner Mongolia vs. Xinjiang Baodi Mining | Inner Mongolia vs. Bus Online Co | Inner Mongolia vs. Western Mining Co | Inner Mongolia vs. Ningbo Ligong Online |
Advanced Technology vs. Nuode Investment Co | Advanced Technology vs. Jiajia Food Group | Advanced Technology vs. Zhejiang Construction Investment | Advanced Technology vs. Jiahe Foods Industry |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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