Correlation Between Shaanxi Meineng and Anyang Iron
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Anyang Iron Steel, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Anyang Iron.
Diversification Opportunities for Shaanxi Meineng and Anyang Iron
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Anyang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean 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 Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Anyang Iron go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Anyang Iron
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Anyang Iron. In addition to that, Shaanxi Meineng is 1.19 times more volatile than Anyang Iron Steel. It trades about -0.01 of its total potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.0 per unit of volatility. If you would invest 230.00 in Anyang Iron Steel on December 4, 2024 and sell it today you would lose (38.00) from holding Anyang Iron Steel or give up 16.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Anyang Iron Steel
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Anyang Iron Steel |
Shaanxi Meineng and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Anyang Iron
The main advantage of trading using opposite Shaanxi Meineng and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Shenzhen Silver Basis | Shaanxi Meineng vs. Montage Technology Co | Shaanxi Meineng vs. Zijin Mining Group | Shaanxi Meineng vs. Hainan Mining Co |
| Anyang Iron vs. Jiangxi Copper Co | Anyang Iron vs. Pengxin International Mining | Anyang Iron vs. Uroica Mining Safety | Anyang Iron vs. Sportsoul Co Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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