Correlation Between Anyang Iron and Fuda Alloy
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By analyzing existing cross correlation between Anyang Iron Steel and Fuda Alloy Materials, you can compare the effects of market volatilities on Anyang Iron and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Fuda Alloy.
Diversification Opportunities for Anyang Iron and Fuda Alloy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anyang and Fuda is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Anyang Iron i.e., Anyang Iron and Fuda Alloy go up and down completely randomly.
Pair Corralation between Anyang Iron and Fuda Alloy
Assuming the 90 days trading horizon Anyang Iron is expected to generate 29.23 times less return on investment than Fuda Alloy. In addition to that, Anyang Iron is 1.14 times more volatile than Fuda Alloy Materials. It trades about 0.0 of its total potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.12 per unit of volatility. If you would invest 1,327 in Fuda Alloy Materials on October 30, 2024 and sell it today you would earn a total of 190.00 from holding Fuda Alloy Materials or generate 14.32% 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. Fuda Alloy Materials
Performance |
| Timeline |
| Anyang Iron Steel |
| Fuda Alloy Materials |
Anyang Iron and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Fuda Alloy
The main advantage of trading using opposite Anyang Iron and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy'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 |
| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank | Fuda Alloy vs. Bank of China | Fuda Alloy vs. Agricultural Bank of |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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