Correlation Between Equinox Gold and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and ANGANG STEEL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Equinox Gold and ANGANG STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and ANGANG STEEL H , you can compare the effects of market volatilities on Equinox Gold and ANGANG STEEL 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 Equinox Gold with a short position of ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and ANGANG STEEL.
Diversification Opportunities for Equinox Gold and ANGANG STEEL
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Equinox and ANGANG is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H and Equinox Gold 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 Equinox Gold Corp are associated (or correlated) with ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of Equinox Gold i.e., Equinox Gold and ANGANG STEEL go up and down completely randomly.
Pair Corralation between Equinox Gold and ANGANG STEEL
Assuming the 90 days trading horizon Equinox Gold Corp is expected to generate 0.95 times more return on investment than ANGANG STEEL. However, Equinox Gold Corp is 1.06 times less risky than ANGANG STEEL. It trades about 0.04 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about -0.01 per unit of risk. If you would invest 391.00 in Equinox Gold Corp on October 25, 2024 and sell it today you would earn a total of 163.00 from holding Equinox Gold Corp or generate 41.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. ANGANG STEEL H
Performance |
| Timeline |
| Equinox Gold Corp |
| ANGANG STEEL H |
Equinox Gold and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and ANGANG STEEL
The main advantage of trading using opposite Equinox Gold and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL's long position.| Equinox Gold vs. Nippon Steel | Equinox Gold vs. NEW MILLENNIUM IRON | Equinox Gold vs. STEEL DYNAMICS | Equinox Gold vs. Axfood AB |
| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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