Correlation Between Anhui Tongguan and Industrial
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By analyzing existing cross correlation between Anhui Tongguan Copper and Industrial and Commercial, you can compare the effects of market volatilities on Anhui Tongguan and Industrial 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 Tongguan with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Industrial.
Diversification Opportunities for Anhui Tongguan and Industrial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Industrial is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Anhui Tongguan 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 Tongguan Copper are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Industrial go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Industrial
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Industrial. In addition to that, Anhui Tongguan is 2.17 times more volatile than Industrial and Commercial. It trades about -0.01 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about -0.02 per unit of volatility. If you would invest 695.00 in Industrial and Commercial on November 30, 2024 and sell it today you would lose (8.00) from holding Industrial and Commercial or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Industrial and Commercial
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Industrial and Commercial |
Anhui Tongguan and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Industrial
The main advantage of trading using opposite Anhui Tongguan and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Anhui Tongguan vs. Qingdao Choho Industrial | Anhui Tongguan vs. Industrial Bank Co | Anhui Tongguan vs. Yoantion Industrial IncLtd | Anhui Tongguan vs. Ningbo Tech Bank Co |
| Industrial vs. AUPU Home Style | Industrial vs. Aba Chemicals Corp | Industrial vs. Qumei Furniture Group | Industrial vs. Ningxia Younglight Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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