Correlation Between Shandong Iron and Andon Health
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By analyzing existing cross correlation between Shandong Iron and and Andon Health Co, you can compare the effects of market volatilities on Shandong Iron and Andon Health 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 Shandong Iron with a short position of Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Andon Health.
Diversification Opportunities for Shandong Iron and Andon Health
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Andon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health and Shandong 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 Shandong Iron and are associated (or correlated) with Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Shandong Iron i.e., Shandong Iron and Andon Health go up and down completely randomly.
Pair Corralation between Shandong Iron and Andon Health
Assuming the 90 days trading horizon Shandong Iron is expected to generate 3.67 times less return on investment than Andon Health. But when comparing it to its historical volatility, Shandong Iron and is 1.2 times less risky than Andon Health. It trades about 0.01 of its potential returns per unit of risk. Andon Health Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,442 in Andon Health Co on October 30, 2024 and sell it today you would earn a total of 524.00 from holding Andon Health Co or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Iron and vs. Andon Health Co
Performance |
| Timeline |
| Shandong Iron |
| Andon Health |
Shandong Iron and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Andon Health
The main advantage of trading using opposite Shandong Iron and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Shandong Iron vs. Zijin Mining Group | Shandong Iron vs. Wanhua Chemical Group | Shandong Iron vs. Baoshan Iron Steel | Shandong Iron vs. Shandong Gold Mining |
| Andon Health vs. Shenzhen SDG Information | Andon Health vs. Zhangjiagang Freetrade Science | Andon Health vs. Guangzhou Ruoyuchen Information | Andon Health vs. Dawning Information Industry |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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