Correlation Between MAANSHAN IRON and CAP EX

Can any of the company-specific risk be diversified away by investing in both MAANSHAN IRON and CAP EX 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 CAP EX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MAANSHAN IRON H and CAP EX IRON ORE, you can compare the effects of market volatilities on MAANSHAN IRON and CAP EX 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 CAP EX. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAANSHAN IRON and CAP EX.

Diversification Opportunities for MAANSHAN IRON and CAP EX

-0.05

Correlation Coefficient

MAANSHAN IRON  CAP EX

Good diversification

The 3 months correlation between MAANSHAN and CAP is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MAANSHAN IRON H and CAP EX IRON ORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP EX IRON 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 H are associated (or correlated) with CAP EX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP EX IRON has no effect on the direction of MAANSHAN IRON i.e., MAANSHAN IRON and CAP EX go up and down completely randomly.

Pair Corralation between MAANSHAN IRON and CAP EX

Assuming the 90 days trading horizon MAANSHAN IRON H is expected to generate 0.78 times more return on investment than CAP EX. However, MAANSHAN IRON H is 1.28 times less risky than CAP EX. It trades about 0.12 of its potential returns per unit of risk. CAP EX IRON ORE is currently generating about 0.02 per unit of risk. If you would invest  18.00  in MAANSHAN IRON H on May 7, 2025 and sell it today you would earn a total of  5.00  from holding MAANSHAN IRON H or generate 27.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

MAANSHAN IRON H   vs.  CAP EX IRON ORE

MAANSHAN IRON H

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MAANSHAN IRON H are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, MAANSHAN IRON unveiled solid returns over the last few months and may actually be approaching a breakup point.

CAP EX IRON

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAP EX IRON ORE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CAP EX may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with MAANSHAN IRON and CAP EX

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

The idea behind MAANSHAN IRON H and CAP EX IRON ORE 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.