Correlation Between Shandong Homey and Anyang Iron
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By analyzing existing cross correlation between Shandong Homey Aquatic and Anyang Iron Steel, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Anyang Iron.
Diversification Opportunities for Shandong Homey and Anyang Iron
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Anyang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Anyang Iron go up and down completely randomly.
Pair Corralation between Shandong Homey and Anyang Iron
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 1.03 times more return on investment than Anyang Iron. However, Shandong Homey is 1.03 times more volatile than Anyang Iron Steel. It trades about 0.0 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.01 per unit of risk. If you would invest 257.00 in Shandong Homey Aquatic on October 14, 2024 and sell it today you would lose (39.00) from holding Shandong Homey Aquatic or give up 15.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Anyang Iron Steel
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Anyang Iron Steel |
Shandong Homey and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Anyang Iron
The main advantage of trading using opposite Shandong Homey and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Guangdong Wens Foodstuff | Shandong Homey vs. Guilin Seamild Foods | Shandong Homey vs. Olympic Circuit Technology | Shandong Homey vs. Linewell Software Co |
| Anyang Iron vs. Qiming Information Technology | Anyang Iron vs. Jason Furniture | Anyang Iron vs. Beijing Kingsoft Office | Anyang Iron vs. Shandong Homey Aquatic |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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