Correlation Between Baoshan Iron and Anhui Huilong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Baoshan Iron and Anhui Huilong 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 Baoshan Iron with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Anhui Huilong.
Diversification Opportunities for Baoshan Iron and Anhui Huilong
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baoshan and Anhui is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Baoshan Iron 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 Baoshan Iron Steel are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Anhui Huilong go up and down completely randomly.
Pair Corralation between Baoshan Iron and Anhui Huilong
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.93 times more return on investment than Anhui Huilong. However, Baoshan Iron Steel is 1.08 times less risky than Anhui Huilong. It trades about -0.09 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.2 per unit of risk. If you would invest 704.00 in Baoshan Iron Steel on October 28, 2024 and sell it today you would lose (22.00) from holding Baoshan Iron Steel or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Baoshan Iron Steel |
| Anhui Huilong Agricu |
Baoshan Iron and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Anhui Huilong
The main advantage of trading using opposite Baoshan Iron and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Anhui Huilong 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 Huilong will offset losses from the drop in Anhui Huilong's long position.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |