Correlation Between Anyang Iron and Songz Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anyang Iron Steel and Songz Automobile Air, you can compare the effects of market volatilities on Anyang Iron and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Songz Automobile.
Diversification Opportunities for Anyang Iron and Songz Automobile
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anyang and Songz is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Anyang Iron i.e., Anyang Iron and Songz Automobile go up and down completely randomly.
Pair Corralation between Anyang Iron and Songz Automobile
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.78 times more return on investment than Songz Automobile. However, Anyang Iron is 1.78 times more volatile than Songz Automobile Air. It trades about 0.04 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.02 per unit of risk. If you would invest 165.00 in Anyang Iron Steel on October 14, 2024 and sell it today you would earn a total of 7.00 from holding Anyang Iron Steel or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Songz Automobile Air
Performance |
| Timeline |
| Anyang Iron Steel |
| Songz Automobile Air |
Anyang Iron and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Songz Automobile
The main advantage of trading using opposite Anyang Iron and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Anyang Iron vs. Qiming Information Technology | Anyang Iron vs. Jason Furniture | Anyang Iron vs. Beijing Kingsoft Office | Anyang Iron vs. Shandong Homey Aquatic |
| Songz Automobile vs. Anyang Iron Steel | Songz Automobile vs. Elite Color Environmental | Songz Automobile vs. TongFu Microelectronics Co | Songz Automobile vs. Shenzhen MYS Environmental |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |