Correlation Between Anyang Iron and Highbroad Advanced
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By analyzing existing cross correlation between Anyang Iron Steel and Highbroad Advanced Material, you can compare the effects of market volatilities on Anyang Iron and Highbroad Advanced 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 Highbroad Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Highbroad Advanced.
Diversification Opportunities for Anyang Iron and Highbroad Advanced
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anyang and Highbroad is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Highbroad Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highbroad Advanced 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 Highbroad Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highbroad Advanced has no effect on the direction of Anyang Iron i.e., Anyang Iron and Highbroad Advanced go up and down completely randomly.
Pair Corralation between Anyang Iron and Highbroad Advanced
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 0.65 times more return on investment than Highbroad Advanced. However, Anyang Iron Steel is 1.53 times less risky than Highbroad Advanced. It trades about -0.12 of its potential returns per unit of risk. Highbroad Advanced Material is currently generating about -0.1 per unit of risk. If you would invest 191.00 in Anyang Iron Steel on October 30, 2024 and sell it today you would lose (9.00) from holding Anyang Iron Steel or give up 4.71% 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. Highbroad Advanced Material
Performance |
| Timeline |
| Anyang Iron Steel |
| Highbroad Advanced |
Anyang Iron and Highbroad Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Highbroad Advanced
The main advantage of trading using opposite Anyang Iron and Highbroad Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Highbroad Advanced 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 Highbroad Advanced will offset losses from the drop in Highbroad Advanced'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 |
| Highbroad Advanced vs. Chengdu Kanghua Biological | Highbroad Advanced vs. Suzhou Novoprotein Scientific | Highbroad Advanced vs. Aluminum Corp of | Highbroad Advanced vs. COL Digital Publishing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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