Correlation Between Zhongshan Public and Anyang Iron
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By analyzing existing cross correlation between Zhongshan Public Utilities and Anyang Iron Steel, you can compare the effects of market volatilities on Zhongshan Public and Anyang 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 Zhongshan Public with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Anyang Iron.
Diversification Opportunities for Zhongshan Public and Anyang Iron
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongshan and Anyang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Anyang Iron go up and down completely randomly.
Pair Corralation between Zhongshan Public and Anyang Iron
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.97 times more return on investment than Anyang Iron. However, Zhongshan Public Utilities is 1.03 times less risky than Anyang Iron. It trades about -0.12 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.29 per unit of risk. If you would invest 907.00 in Zhongshan Public Utilities on October 29, 2024 and sell it today you would lose (35.00) from holding Zhongshan Public Utilities or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Anyang Iron Steel
Performance |
| Timeline |
| Zhongshan Public Uti |
| Anyang Iron Steel |
Zhongshan Public and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Anyang Iron
The main advantage of trading using opposite Zhongshan Public and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Anyang 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Zhongshan Public vs. Eastern Air Logistics | Zhongshan Public vs. Xiamen Goldenhome Co | Zhongshan Public vs. ROPEOK Technology Group | Zhongshan Public vs. Qumei Furniture Group |
| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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