Correlation Between Anyang Iron and Citic Guoan
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By analyzing existing cross correlation between Anyang Iron Steel and Citic Guoan Wine, you can compare the effects of market volatilities on Anyang Iron and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Citic Guoan.
Diversification Opportunities for Anyang Iron and Citic Guoan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anyang and Citic is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Anyang Iron i.e., Anyang Iron and Citic Guoan go up and down completely randomly.
Pair Corralation between Anyang Iron and Citic Guoan
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 0.91 times more return on investment than Citic Guoan. However, Anyang Iron Steel is 1.09 times less risky than Citic Guoan. It trades about 0.0 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of risk. If you would invest 194.00 in Anyang Iron Steel on October 27, 2024 and sell it today you would lose (20.00) from holding Anyang Iron Steel or give up 10.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Citic Guoan Wine
Performance |
| Timeline |
| Anyang Iron Steel |
| Citic Guoan Wine |
Anyang Iron and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Citic Guoan
The main advantage of trading using opposite Anyang Iron and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's 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 |
| Citic Guoan vs. Tianjin Hi Tech Development | Citic Guoan vs. Anhui Jianghuai Automobile | Citic Guoan vs. Shenzhen AV Display Co | Citic Guoan vs. Sichuan Jinshi 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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