Correlation Between Angang Steel and Jinhui Mining
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By analyzing existing cross correlation between Angang Steel Co and Jinhui Mining Co, you can compare the effects of market volatilities on Angang Steel and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angang Steel and Jinhui Mining.
Diversification Opportunities for Angang Steel and Jinhui Mining
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angang and Jinhui is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Angang Steel Co and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Angang Steel i.e., Angang Steel and Jinhui Mining go up and down completely randomly.
Pair Corralation between Angang Steel and Jinhui Mining
Assuming the 90 days trading horizon Angang Steel Co is expected to generate 1.25 times more return on investment than Jinhui Mining. However, Angang Steel is 1.25 times more volatile than Jinhui Mining Co. It trades about 0.04 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.01 per unit of risk. If you would invest 212.00 in Angang Steel Co on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Angang Steel Co or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angang Steel Co vs. Jinhui Mining Co
Performance |
| Timeline |
| Angang Steel |
| Jinhui Mining |
Angang Steel and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angang Steel and Jinhui Mining
The main advantage of trading using opposite Angang Steel and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angang Steel position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining'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 |
| Jinhui Mining vs. Time Publishing and | Jinhui Mining vs. Zhejiang Publishing Media | Jinhui Mining vs. Heilongjiang Publishing Media | Jinhui Mining vs. Chengtun Mining Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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