Correlation Between Guangdong Jingyi and Anhui Fuhuang
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Anhui Fuhuang Steel, you can compare the effects of market volatilities on Guangdong Jingyi and Anhui Fuhuang 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 Guangdong Jingyi with a short position of Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Anhui Fuhuang.
Diversification Opportunities for Guangdong Jingyi and Anhui Fuhuang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anhui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Anhui Fuhuang
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 1.78 times less return on investment than Anhui Fuhuang. In addition to that, Guangdong Jingyi is 1.12 times more volatile than Anhui Fuhuang Steel. It trades about 0.02 of its total potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about 0.04 per unit of volatility. If you would invest 533.00 in Anhui Fuhuang Steel on September 3, 2024 and sell it today you would earn a total of 170.00 from holding Anhui Fuhuang Steel or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Anhui Fuhuang Steel
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Anhui Fuhuang Steel |
Guangdong Jingyi and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Anhui Fuhuang
The main advantage of trading using opposite Guangdong Jingyi and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Anhui Fuhuang 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 Anhui Fuhuang will offset losses from the drop in Anhui Fuhuang's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Hoshine Silicon Ind |
| Anhui Fuhuang vs. Zijin Mining Group | Anhui Fuhuang vs. Baoshan Iron Steel | Anhui Fuhuang vs. Hoshine Silicon Ind |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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