Correlation Between Anyang Iron and ChengDu Hi
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By analyzing existing cross correlation between Anyang Iron Steel and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Anyang Iron and ChengDu Hi 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 Anyang Iron with a short position of ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and ChengDu Hi.
Diversification Opportunities for Anyang Iron and ChengDu Hi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anyang and ChengDu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech and Anyang 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 Anyang Iron Steel are associated (or correlated) with ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Anyang Iron i.e., Anyang Iron and ChengDu Hi go up and down completely randomly.
Pair Corralation between Anyang Iron and ChengDu Hi
Assuming the 90 days trading horizon Anyang Iron Steel is expected to under-perform the ChengDu Hi. But the stock apears to be less risky and, when comparing its historical volatility, Anyang Iron Steel is 1.82 times less risky than ChengDu Hi. The stock trades about -0.01 of its potential returns per unit of risk. The ChengDu Hi Tech Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,787 in ChengDu Hi Tech Development on September 3, 2024 and sell it today you would earn a total of 115.00 from holding ChengDu Hi Tech Development or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| Anyang Iron Steel |
| ChengDu Hi Tech |
Anyang Iron and ChengDu Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and ChengDu Hi
The main advantage of trading using opposite Anyang Iron and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.| Anyang Iron vs. ChengDu Hi Tech Development | Anyang Iron vs. Chahua Modern Housewares | Anyang Iron vs. Jiangxi Hengda Hi Tech | Anyang Iron vs. Jonjee Hi tech Industrial |
| ChengDu Hi vs. Industrial and Commercial | ChengDu Hi vs. China Construction Bank | ChengDu Hi vs. Bank of China | ChengDu Hi vs. Agricultural Bank of |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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