Correlation Between Anyang Iron and Runjian Communication
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By analyzing existing cross correlation between Anyang Iron Steel and Runjian Communication Co, you can compare the effects of market volatilities on Anyang Iron and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Runjian Communication.
Diversification Opportunities for Anyang Iron and Runjian Communication
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anyang and Runjian is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Anyang Iron i.e., Anyang Iron and Runjian Communication go up and down completely randomly.
Pair Corralation between Anyang Iron and Runjian Communication
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.12 times more return on investment than Runjian Communication. However, Anyang Iron is 1.12 times more volatile than Runjian Communication Co. It trades about 0.07 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.04 per unit of risk. If you would invest 142.00 in Anyang Iron Steel on October 18, 2024 and sell it today you would earn a total of 34.00 from holding Anyang Iron Steel or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Runjian Communication Co
Performance |
| Timeline |
| Anyang Iron Steel |
| Runjian Communication |
Anyang Iron and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Runjian Communication
The main advantage of trading using opposite Anyang Iron and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Anyang Iron vs. Wuhan Yangtze Communication | Anyang Iron vs. Porton Fine Chemicals | Anyang Iron vs. Hubei Yingtong Telecommunication | Anyang Iron vs. Shenzhen Noposion Agrochemicals |
| Runjian Communication vs. Liuzhou Chemical Industry | Runjian Communication vs. Shenyang Chemical Industry | Runjian Communication vs. Baoshan Iron Steel | Runjian Communication vs. Anyang Iron Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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