Correlation Between Anhui Fuhuang and Ningbo Jintian
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Ningbo Jintian Copper, you can compare the effects of market volatilities on Anhui Fuhuang and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Ningbo Jintian.
Diversification Opportunities for Anhui Fuhuang and Ningbo Jintian
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Ningbo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Ningbo Jintian
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 1.49 times more return on investment than Ningbo Jintian. However, Anhui Fuhuang is 1.49 times more volatile than Ningbo Jintian Copper. It trades about 0.02 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.0 per unit of risk. If you would invest 553.00 in Anhui Fuhuang Steel on October 28, 2024 and sell it today you would earn a total of 20.00 from holding Anhui Fuhuang Steel or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.69% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Ningbo Jintian Copper |
Anhui Fuhuang and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Ningbo Jintian
The main advantage of trading using opposite Anhui Fuhuang and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Anhui Fuhuang vs. Heilongjiang Transport Development | Anhui Fuhuang vs. Eyebright Medical Technology | Anhui Fuhuang vs. Bangyan Technology Co | Anhui Fuhuang vs. Tianshan Aluminum Group |
| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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