Correlation Between Anyang Iron and China Great
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By analyzing existing cross correlation between Anyang Iron Steel and China Great Wall, you can compare the effects of market volatilities on Anyang Iron and China Great 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 China Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and China Great.
Diversification Opportunities for Anyang Iron and China Great
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anyang and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and China Great Wall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Great Wall 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 China Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Great Wall has no effect on the direction of Anyang Iron i.e., Anyang Iron and China Great go up and down completely randomly.
Pair Corralation between Anyang Iron and China Great
Assuming the 90 days trading horizon Anyang Iron Steel is expected to under-perform the China Great. In addition to that, Anyang Iron is 2.37 times more volatile than China Great Wall. It trades about -0.36 of its total potential returns per unit of risk. China Great Wall is currently generating about -0.37 per unit of volatility. If you would invest 855.00 in China Great Wall on October 16, 2024 and sell it today you would lose (101.00) from holding China Great Wall or give up 11.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. China Great Wall
Performance |
| Timeline |
| Anyang Iron Steel |
| China Great Wall |
Anyang Iron and China Great Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and China Great
The main advantage of trading using opposite Anyang Iron and China Great positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, China Great 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 China Great will offset losses from the drop in China Great's long position.| Anyang Iron vs. Beijing Enlight Media | Anyang Iron vs. Sichuan Fulin Transportation | Anyang Iron vs. China Sports Industry | Anyang Iron vs. China Publishing Media |
| China Great vs. Elite Color Environmental | China Great vs. Anyang Iron Steel | China Great vs. Beijing Jiaman Dress | China Great vs. Penyao Environmental Protection |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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