Correlation Between Anyang Iron and Guangdong Wens
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By analyzing existing cross correlation between Anyang Iron Steel and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Anyang Iron and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Guangdong Wens.
Diversification Opportunities for Anyang Iron and Guangdong Wens
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anyang and Guangdong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Anyang Iron i.e., Anyang Iron and Guangdong Wens go up and down completely randomly.
Pair Corralation between Anyang Iron and Guangdong Wens
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.29 times more return on investment than Guangdong Wens. However, Anyang Iron is 1.29 times more volatile than Guangdong Wens Foodstuff. It trades about -0.01 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.02 per unit of risk. If you would invest 221.00 in Anyang Iron Steel on October 27, 2024 and sell it today you would lose (47.00) from holding Anyang Iron Steel or give up 21.27% 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. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Anyang Iron Steel |
| Guangdong Wens Foodstuff |
Anyang Iron and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Guangdong Wens
The main advantage of trading using opposite Anyang Iron and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Anyang Iron vs. Shandong Polymer Biochemicals | Anyang Iron vs. Porton Fine Chemicals | Anyang Iron vs. Meinian Onehealth Healthcare | Anyang Iron vs. Goodwill E Health |
| Guangdong Wens vs. Kweichow Moutai Co | Guangdong Wens vs. Contemporary Amperex Technology | Guangdong Wens vs. G bits Network Technology | Guangdong Wens vs. Beijing Roborock Technology |
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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