Correlation Between TOMBADOR IRON and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both TOMBADOR IRON and ANGANG STEEL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TOMBADOR IRON and ANGANG STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOMBADOR IRON LTD and ANGANG STEEL H , you can compare the effects of market volatilities on TOMBADOR IRON 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 TOMBADOR IRON with a short position of ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOMBADOR IRON and ANGANG STEEL.
Diversification Opportunities for TOMBADOR IRON and ANGANG STEEL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TOMBADOR and ANGANG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TOMBADOR IRON LTD and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H and TOMBADOR 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 TOMBADOR IRON LTD 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 H has no effect on the direction of TOMBADOR IRON i.e., TOMBADOR IRON and ANGANG STEEL go up and down completely randomly.
Pair Corralation between TOMBADOR IRON and ANGANG STEEL
Assuming the 90 days horizon TOMBADOR IRON LTD is expected to generate 13.92 times more return on investment than ANGANG STEEL. However, TOMBADOR IRON is 13.92 times more volatile than ANGANG STEEL H . It trades about 0.06 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about 0.04 per unit of risk. If you would invest 0.40 in TOMBADOR IRON LTD on December 11, 2024 and sell it today you would earn a total of 9.60 from holding TOMBADOR IRON LTD or generate 2400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
TOMBADOR IRON LTD vs. ANGANG STEEL H
Performance |
| Timeline |
| TOMBADOR IRON LTD |
| ANGANG STEEL H |
TOMBADOR IRON and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOMBADOR IRON and ANGANG STEEL
The main advantage of trading using opposite TOMBADOR IRON and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOMBADOR IRON 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.| TOMBADOR IRON vs. CHINA EDUCATION GROUP | ||
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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