Correlation Between Industrial Securities and Angang Steel
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By analyzing existing cross correlation between Industrial Securities Co and Angang Steel Co, you can compare the effects of market volatilities on Industrial Securities and Angang Steel 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 Industrial Securities with a short position of Angang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Angang Steel.
Diversification Opportunities for Industrial Securities and Angang Steel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Angang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities Co and Angang Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angang Steel and Industrial Securities 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 Industrial Securities Co are associated (or correlated) with Angang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angang Steel has no effect on the direction of Industrial Securities i.e., Industrial Securities and Angang Steel go up and down completely randomly.
Pair Corralation between Industrial Securities and Angang Steel
Assuming the 90 days trading horizon Industrial Securities Co is expected to generate 0.97 times more return on investment than Angang Steel. However, Industrial Securities Co is 1.03 times less risky than Angang Steel. It trades about -0.01 of its potential returns per unit of risk. Angang Steel Co is currently generating about -0.02 per unit of risk. If you would invest 700.00 in Industrial Securities Co on October 23, 2024 and sell it today you would lose (98.00) from holding Industrial Securities Co or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Securities Co vs. Angang Steel Co
Performance |
| Timeline |
| Industrial Securities |
| Angang Steel |
Industrial Securities and Angang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Angang Steel
The main advantage of trading using opposite Industrial Securities and Angang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities position performs unexpectedly, Angang Steel 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 Angang Steel will offset losses from the drop in Angang Steel's long position.| Industrial Securities vs. Angang Steel Co | Industrial Securities vs. City Development Environment | Industrial Securities vs. China Everbright Bank | Industrial Securities vs. Ningbo Tech Bank Co |
| Angang Steel vs. Zijin Mining Group | Angang Steel vs. Wanhua Chemical Group | Angang Steel vs. Baoshan Iron Steel | Angang Steel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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