Correlation Between Anyang Iron and Shuhua Sports
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By analyzing existing cross correlation between Anyang Iron Steel and Shuhua Sports Co, you can compare the effects of market volatilities on Anyang Iron and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Shuhua Sports.
Diversification Opportunities for Anyang Iron and Shuhua Sports
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anyang and Shuhua is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Anyang Iron i.e., Anyang Iron and Shuhua Sports go up and down completely randomly.
Pair Corralation between Anyang Iron and Shuhua Sports
Assuming the 90 days trading horizon Anyang Iron Steel is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Anyang Iron Steel is 1.08 times less risky than Shuhua Sports. The stock trades about -0.24 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 759.00 in Shuhua Sports Co on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Shuhua Sports Co or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Shuhua Sports Co
Performance |
| Timeline |
| Anyang Iron Steel |
| Shuhua Sports |
Anyang Iron and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Shuhua Sports
The main advantage of trading using opposite Anyang Iron and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Anyang Iron vs. ChengDu Hi Tech Development | Anyang Iron vs. Chahua Modern Housewares | Anyang Iron vs. Jiangxi Hengda Hi Tech | Anyang Iron vs. Jonjee Hi tech Industrial |
| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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