Correlation Between Maanshan Iron and Fold Holdings,

Can any of the company-specific risk be diversified away by investing in both Maanshan Iron and Fold Holdings, 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 Maanshan Iron and Fold Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maanshan Iron Steel and Fold Holdings, Warrant, you can compare the effects of market volatilities on Maanshan Iron and Fold Holdings, 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 Maanshan Iron with a short position of Fold Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maanshan Iron and Fold Holdings,.

Diversification Opportunities for Maanshan Iron and Fold Holdings,

0.32

Correlation Coefficient

Maanshan Iron  Fold Holdings,

Weak diversification

The 3 months correlation between Maanshan and Fold is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Maanshan Iron Steel and Fold Holdings, Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fold Holdings, Warrant and Maanshan Iron 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 Maanshan Iron Steel are associated (or correlated) with Fold Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fold Holdings, Warrant has no effect on the direction of Maanshan Iron i.e., Maanshan Iron and Fold Holdings, go up and down completely randomly.

Pair Corralation between Maanshan Iron and Fold Holdings,

Assuming the 90 days horizon Maanshan Iron Steel is expected to generate 0.31 times more return on investment than Fold Holdings,. However, Maanshan Iron Steel is 3.25 times less risky than Fold Holdings,. It trades about 0.14 of its potential returns per unit of risk. Fold Holdings, Warrant is currently generating about 0.0 per unit of risk. If you would invest  18.00  in Maanshan Iron Steel on December 29, 2024 and sell it today you would earn a total of  4.00  from holding Maanshan Iron Steel or generate 22.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.61%
Values	Daily Returns

Maanshan Iron Steel  vs.  Fold Holdings, Warrant

Maanshan Iron Steel

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maanshan Iron Steel are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Maanshan Iron reported solid returns over the last few months and may actually be approaching a breakup point.

Fold Holdings, Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fold Holdings, Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Fold Holdings, is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Maanshan Iron and Fold Holdings,

The main advantage of trading using opposite Maanshan Iron and Fold Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maanshan Iron position performs unexpectedly, Fold Holdings, 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 Fold Holdings, will offset losses from the drop in Fold Holdings,'s long position.

The idea behind Maanshan Iron Steel and Fold Holdings, Warrant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.