Correlation Between Anyang Iron and Shanghai Newtouch
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By analyzing existing cross correlation between Anyang Iron Steel and Shanghai Newtouch Software, you can compare the effects of market volatilities on Anyang Iron and Shanghai Newtouch 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 Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Shanghai Newtouch.
Diversification Opportunities for Anyang Iron and Shanghai Newtouch
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anyang and Shanghai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Anyang Iron i.e., Anyang Iron and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Anyang Iron and Shanghai Newtouch
Assuming the 90 days trading horizon Anyang Iron Steel is expected to under-perform the Shanghai Newtouch. But the stock apears to be less risky and, when comparing its historical volatility, Anyang Iron Steel is 1.81 times less risky than Shanghai Newtouch. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Newtouch Software is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,071 in Shanghai Newtouch Software on October 16, 2024 and sell it today you would earn a total of 329.00 from holding Shanghai Newtouch Software or generate 30.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Anyang Iron Steel |
| Shanghai Newtouch |
Anyang Iron and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Shanghai Newtouch
The main advantage of trading using opposite Anyang Iron and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, Shanghai Newtouch 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 Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Anyang Iron vs. Beijing Enlight Media | Anyang Iron vs. Sichuan Fulin Transportation | Anyang Iron vs. China Sports Industry | Anyang Iron vs. China Publishing Media |
| Shanghai Newtouch vs. Hengdian Entertainment Co | Shanghai Newtouch vs. Sportsoul Co Ltd | Shanghai Newtouch vs. Duzhe Publishing Media | Shanghai Newtouch vs. Mango Excellent Media |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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