Correlation Between Integrated Electronic and Anhui Tongguan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Integrated Electronic Systems and Anhui Tongguan Copper, you can compare the effects of market volatilities on Integrated Electronic and Anhui Tongguan 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 Integrated Electronic with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Anhui Tongguan.
Diversification Opportunities for Integrated Electronic and Anhui Tongguan
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integrated and Anhui is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Integrated Electronic and Anhui Tongguan
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to under-perform the Anhui Tongguan. In addition to that, Integrated Electronic is 1.4 times more volatile than Anhui Tongguan Copper. It trades about -0.07 of its total potential returns per unit of risk. Anhui Tongguan Copper is currently generating about -0.03 per unit of volatility. If you would invest 1,111 in Anhui Tongguan Copper on October 11, 2024 and sell it today you would lose (45.00) from holding Anhui Tongguan Copper or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Integrated Electronic |
| Anhui Tongguan Copper |
Integrated Electronic and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Anhui Tongguan
The main advantage of trading using opposite Integrated Electronic and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Anhui Tongguan 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 Tongguan will offset losses from the drop in Anhui Tongguan's long position.The idea behind Integrated Electronic Systems and Anhui Tongguan Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Anhui Tongguan vs. Ningbo Ligong Online | Anhui Tongguan vs. Integrated Electronic Systems | Anhui Tongguan vs. Beijing YanDong MicroElectronic | Anhui Tongguan vs. Guangzhou Jinyi Media |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |