Correlation Between Inner Mongolia and Angang Steel
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Angang Steel Co, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Angang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Angang Steel.
Diversification Opportunities for Inner Mongolia and Angang Steel
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Angang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Angang Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angang Steel and Inner Mongolia 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 Inner Mongolia BaoTou 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 has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Angang Steel go up and down completely randomly.
Pair Corralation between Inner Mongolia and Angang Steel
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.05 times more return on investment than Angang Steel. However, Inner Mongolia is 1.05 times more volatile than Angang Steel Co. It trades about -0.06 of its potential returns per unit of risk. Angang Steel Co is currently generating about -0.09 per unit of risk. If you would invest 181.00 in Inner Mongolia BaoTou on November 3, 2024 and sell it today you would lose (3.00) from holding Inner Mongolia BaoTou or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Angang Steel Co
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Angang Steel |
Inner Mongolia and Angang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Angang Steel
The main advantage of trading using opposite Inner Mongolia and Angang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Shenzhen Zqgame | Inner Mongolia vs. Guangdong Qunxing Toys | Inner Mongolia vs. CICT Mobile Communication | Inner Mongolia vs. Linewell Software Co |
| Angang Steel vs. JCHX Mining Management | Angang Steel vs. Tibet Huayu Mining | Angang Steel vs. Hongrun Construction Group | Angang Steel vs. Senci Electric Machinery |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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