Correlation Between Anyang Iron and Bank of Suzhou
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By analyzing existing cross correlation between Anyang Iron Steel and Bank of Suzhou, you can compare the effects of market volatilities on Anyang Iron and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Bank of Suzhou.
Diversification Opportunities for Anyang Iron and Bank of Suzhou
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anyang and Bank is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Anyang Iron i.e., Anyang Iron and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Anyang Iron and Bank of Suzhou
Assuming the 90 days trading horizon Anyang Iron Steel is expected to under-perform the Bank of Suzhou. In addition to that, Anyang Iron is 1.69 times more volatile than Bank of Suzhou. It trades about 0.0 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.03 per unit of volatility. If you would invest 678.00 in Bank of Suzhou on October 30, 2024 and sell it today you would earn a total of 115.00 from holding Bank of Suzhou or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Bank of Suzhou
Performance |
| Timeline |
| Anyang Iron Steel |
| Bank of Suzhou |
Anyang Iron and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Bank of Suzhou
The main advantage of trading using opposite Anyang Iron and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
| Bank of Suzhou vs. Hengli Petrochemical Co | Bank of Suzhou vs. Miracll Chemicals Co | Bank of Suzhou vs. Anji Foodstuff Co | Bank of Suzhou vs. Shenzhen Noposion Agrochemicals |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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