Correlation Between Anhui Fuhuang and Baoshan Iron
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Fuhuang Steel and Baoshan Iron Steel, you can compare the effects of market volatilities on Anhui Fuhuang and Baoshan 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 Anhui Fuhuang with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Baoshan Iron.
Diversification Opportunities for Anhui Fuhuang and Baoshan Iron
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Baoshan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Anhui Fuhuang 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 Anhui Fuhuang Steel are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Baoshan Iron go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Baoshan Iron
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 1.61 times more return on investment than Baoshan Iron. However, Anhui Fuhuang is 1.61 times more volatile than Baoshan Iron Steel. It trades about 0.04 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.04 per unit of risk. If you would invest 574.00 in Anhui Fuhuang Steel on September 12, 2024 and sell it today you would earn a total of 193.00 from holding Anhui Fuhuang Steel or generate 33.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Baoshan Iron Steel
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Baoshan Iron Steel |
Anhui Fuhuang and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Baoshan Iron
The main advantage of trading using opposite Anhui Fuhuang and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Baoshan 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Anhui Fuhuang vs. Healthcare Co | Anhui Fuhuang vs. Shanghai Rongtai Health | Anhui Fuhuang vs. Impulse Qingdao Health | Anhui Fuhuang vs. Yuan Longping High tech |
| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |