Correlation Between SGSG Sciencetechnolog and Anhui Fuhuang
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By analyzing existing cross correlation between SGSG Sciencetechnology Co and Anhui Fuhuang Steel, you can compare the effects of market volatilities on SGSG Sciencetechnolog and Anhui Fuhuang 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 SGSG Sciencetechnolog with a short position of Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGSG Sciencetechnolog and Anhui Fuhuang.
Diversification Opportunities for SGSG Sciencetechnolog and Anhui Fuhuang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SGSG and Anhui is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SGSG Sciencetechnology Co and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel and SGSG Sciencetechnolog 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 SGSG Sciencetechnology Co are associated (or correlated) with Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of SGSG Sciencetechnolog i.e., SGSG Sciencetechnolog and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between SGSG Sciencetechnolog and Anhui Fuhuang
Assuming the 90 days trading horizon SGSG Sciencetechnology Co is expected to generate 1.42 times more return on investment than Anhui Fuhuang. However, SGSG Sciencetechnolog is 1.42 times more volatile than Anhui Fuhuang Steel. It trades about 0.09 of its potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about 0.02 per unit of risk. If you would invest 1,057 in SGSG Sciencetechnology Co on November 9, 2024 and sell it today you would earn a total of 4,186 from holding SGSG Sciencetechnology Co or generate 396.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 75.42% |
| Values | Daily Returns |
SGSG Sciencetechnology Co vs. Anhui Fuhuang Steel
Performance |
| Timeline |
| SGSG Sciencetechnology |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Anhui Fuhuang Steel |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SGSG Sciencetechnolog and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SGSG Sciencetechnolog and Anhui Fuhuang
The main advantage of trading using opposite SGSG Sciencetechnolog and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGSG Sciencetechnolog position performs unexpectedly, Anhui Fuhuang 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 Fuhuang will offset losses from the drop in Anhui Fuhuang's long position.The idea behind SGSG Sciencetechnology Co and Anhui Fuhuang Steel 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.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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