Correlation Between Shenzhen and Anyang Iron
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By analyzing existing cross correlation between Shenzhen AV Display Co and Anyang Iron Steel, you can compare the effects of market volatilities on Shenzhen and Anyang Iron 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 Shenzhen with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Anyang Iron.
Diversification Opportunities for Shenzhen and Anyang Iron
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Anyang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel and Shenzhen 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 Shenzhen AV Display Co are associated (or correlated) with Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Shenzhen i.e., Shenzhen and Anyang Iron go up and down completely randomly.
Pair Corralation between Shenzhen and Anyang Iron
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Anyang Iron. In addition to that, Shenzhen is 1.9 times more volatile than Anyang Iron Steel. It trades about -0.19 of its total potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.33 per unit of volatility. If you would invest 195.00 in Anyang Iron Steel on October 27, 2024 and sell it today you would lose (21.00) from holding Anyang Iron Steel or give up 10.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Anyang Iron Steel
Performance |
| Timeline |
| Shenzhen AV Display |
| Anyang Iron Steel |
Shenzhen and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Anyang Iron
The main advantage of trading using opposite Shenzhen and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Beijing Bewinner Communications | Shenzhen vs. Bank of Communications | Shenzhen vs. Aba Chemicals Corp |
| Anyang Iron vs. Shandong Polymer Biochemicals | Anyang Iron vs. Porton Fine Chemicals | Anyang Iron vs. Meinian Onehealth Healthcare | Anyang Iron vs. Goodwill E Health |
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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