Correlation Between Angang Steel and Jiahe Foods
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By analyzing existing cross correlation between Angang Steel Co and Jiahe Foods Industry, you can compare the effects of market volatilities on Angang Steel and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angang Steel and Jiahe Foods.
Diversification Opportunities for Angang Steel and Jiahe Foods
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angang and Jiahe is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Angang Steel Co and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Angang Steel i.e., Angang Steel and Jiahe Foods go up and down completely randomly.
Pair Corralation between Angang Steel and Jiahe Foods
Assuming the 90 days trading horizon Angang Steel Co is expected to generate 0.41 times more return on investment than Jiahe Foods. However, Angang Steel Co is 2.45 times less risky than Jiahe Foods. It trades about -0.09 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.14 per unit of risk. If you would invest 233.00 in Angang Steel Co on November 3, 2024 and sell it today you would lose (5.00) from holding Angang Steel Co or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angang Steel Co vs. Jiahe Foods Industry
Performance |
| Timeline |
| Angang Steel |
| Jiahe Foods Industry |
Angang Steel and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angang Steel and Jiahe Foods
The main advantage of trading using opposite Angang Steel and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angang Steel position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Angang Steel vs. JCHX Mining Management | Angang Steel vs. Tibet Huayu Mining | Angang Steel vs. Hongrun Construction Group | Angang Steel vs. Senci Electric Machinery |
| Jiahe Foods vs. Beijing Seeyon Internet | Jiahe Foods vs. Offshore Oil Engineering | Jiahe Foods vs. Maxvision Technology Corp | Jiahe Foods vs. Strait Innovation Internet |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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