Correlation Between Angang Steel and Luyin Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Angang Steel Co and Luyin Investment Group, you can compare the effects of market volatilities on Angang Steel and Luyin Investment 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 Angang Steel with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angang Steel and Luyin Investment.
Diversification Opportunities for Angang Steel and Luyin Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Angang and Luyin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Angang Steel Co and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Angang Steel 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 Angang Steel Co are associated (or correlated) with Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Angang Steel i.e., Angang Steel and Luyin Investment go up and down completely randomly.
Pair Corralation between Angang Steel and Luyin Investment
Assuming the 90 days trading horizon Angang Steel Co is expected to under-perform the Luyin Investment. But the stock apears to be less risky and, when comparing its historical volatility, Angang Steel Co is 2.35 times less risky than Luyin Investment. The stock trades about -0.09 of its potential returns per unit of risk. The Luyin Investment Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Luyin Investment Group on November 3, 2024 and sell it today you would lose (9.00) from holding Luyin Investment Group or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angang Steel Co vs. Luyin Investment Group
Performance |
| Timeline |
| Angang Steel |
| Luyin Investment |
Angang Steel and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angang Steel and Luyin Investment
The main advantage of trading using opposite Angang Steel and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angang Steel position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Angang Steel vs. Zijin Mining Group | Angang Steel vs. Wanhua Chemical Group | Angang Steel vs. Baoshan Iron Steel | Angang Steel vs. Shandong Gold Mining |
| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |