Correlation Between Agricultural Bank and Anyang Iron
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Anyang Iron Steel, you can compare the effects of market volatilities on Agricultural Bank and Anyang Iron 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 Agricultural Bank with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Anyang Iron.
Diversification Opportunities for Agricultural Bank and Anyang Iron
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Anyang is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel and Agricultural Bank 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 Agricultural Bank of are associated (or correlated) with Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Anyang Iron go up and down completely randomly.
Pair Corralation between Agricultural Bank and Anyang Iron
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.54 times more return on investment than Anyang Iron. However, Agricultural Bank of is 1.85 times less risky than Anyang Iron. It trades about 0.11 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 274.00 in Agricultural Bank of on October 30, 2024 and sell it today you would earn a total of 242.00 from holding Agricultural Bank of or generate 88.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Anyang Iron Steel
Performance |
| Timeline |
| Agricultural Bank |
| Anyang Iron Steel |
Agricultural Bank and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Anyang Iron
The main advantage of trading using opposite Agricultural Bank and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.The idea behind Agricultural Bank of and Anyang Iron Steel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |