Correlation Between Anhui Fuhuang and Metro Investment
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Metro Investment Development, you can compare the effects of market volatilities on Anhui Fuhuang and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Metro Investment.
Diversification Opportunities for Anhui Fuhuang and Metro Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Metro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Metro Investment go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Metro Investment
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 1.51 times more return on investment than Metro Investment. However, Anhui Fuhuang is 1.51 times more volatile than Metro Investment Development. It trades about 0.36 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.03 per unit of risk. If you would invest 601.00 in Anhui Fuhuang Steel on September 12, 2024 and sell it today you would earn a total of 166.00 from holding Anhui Fuhuang Steel or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Metro Investment Development
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Metro Investment Dev |
Anhui Fuhuang and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Metro Investment
The main advantage of trading using opposite Anhui Fuhuang and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment'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 |
| Metro Investment vs. Industrial and Commercial | Metro Investment vs. China Construction Bank | Metro Investment vs. Bank of China | Metro Investment vs. Agricultural Bank of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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