Correlation Between 159681 and Anhui Tongguan
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By analyzing existing cross correlation between 159681 and Anhui Tongguan Copper, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Anhui Tongguan.
Diversification Opportunities for 159681 and Anhui Tongguan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding 159681 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 159681 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 159681 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 159681 i.e., 159681 and Anhui Tongguan go up and down completely randomly.
Pair Corralation between 159681 and Anhui Tongguan
Assuming the 90 days trading horizon 159681 is expected to under-perform the Anhui Tongguan. But the etf apears to be less risky and, when comparing its historical volatility, 159681 is 1.24 times less risky than Anhui Tongguan. The etf trades about -0.01 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,303 in Anhui Tongguan Copper on October 15, 2024 and sell it today you would lose (245.00) from holding Anhui Tongguan Copper or give up 18.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Anhui Tongguan Copper
Performance |
| Timeline |
| 159681 |
| Anhui Tongguan Copper |
159681 and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Anhui Tongguan
The main advantage of trading using opposite 159681 and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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 159681 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. Guocheng Mining Co | Anhui Tongguan vs. Do Fluoride Chemicals Co | Anhui Tongguan vs. Yingde Greatchem Chemicals | Anhui Tongguan vs. Shenyang Huitian Thermal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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