Correlation Between China Securities and Anyang Iron
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By analyzing existing cross correlation between China Securities 800 and Anyang Iron Steel, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Anyang Iron.
Diversification Opportunities for China Securities and Anyang Iron
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Anyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Anyang Iron go up and down completely randomly.
Pair Corralation between China Securities and Anyang Iron
Assuming the 90 days trading horizon China Securities is expected to generate 1.68 times less return on investment than Anyang Iron. But when comparing it to its historical volatility, China Securities 800 is 1.67 times less risky than Anyang Iron. It trades about 0.05 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 163.00 in Anyang Iron Steel on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Anyang Iron Steel or generate 14.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Anyang Iron Steel
Performance |
| Timeline |
China Securities and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Anyang Iron Steel
Pair trading matchups for Anyang Iron
Pair Trading with China Securities and Anyang Iron
The main advantage of trading using opposite China Securities and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
| Anyang Iron vs. ChengDu Hi Tech Development | Anyang Iron vs. Chahua Modern Housewares | Anyang Iron vs. Jiangxi Hengda Hi Tech | Anyang Iron vs. Jonjee Hi tech Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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