Correlation Between ANGLO ASIAN and Xiwang Special
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Xiwang Special 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 ANGLO ASIAN and Xiwang Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLO ASIAN MINING and Xiwang Special Steel, you can compare the effects of market volatilities on ANGLO ASIAN and Xiwang Special 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 ANGLO ASIAN with a short position of Xiwang Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Xiwang Special.
Diversification Opportunities for ANGLO ASIAN and Xiwang Special
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANGLO and Xiwang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and Xiwang Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Special Steel and ANGLO ASIAN 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 ANGLO ASIAN MINING are associated (or correlated) with Xiwang Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Special Steel has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Xiwang Special go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and Xiwang Special
If you would invest 126.00 in ANGLO ASIAN MINING on October 29, 2024 and sell it today you would earn a total of 3.00 from holding ANGLO ASIAN MINING or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. Xiwang Special Steel
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| Xiwang Special Steel |
ANGLO ASIAN and Xiwang Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and Xiwang Special
The main advantage of trading using opposite ANGLO ASIAN and Xiwang Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Xiwang Special 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 Xiwang Special will offset losses from the drop in Xiwang Special's long position.| ANGLO ASIAN vs. CAL MAINE FOODS | ANGLO ASIAN vs. United Insurance Holdings | ANGLO ASIAN vs. United Natural Foods | ANGLO ASIAN vs. SENECA FOODS A |
| Xiwang Special vs. SOEDER SPORTFISKE AB | Xiwang Special vs. SPORT LISBOA E | Xiwang Special vs. COLUMBIA SPORTSWEAR | Xiwang Special vs. ANTA SPORTS PRODUCT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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