Correlation Between Anhui Conch and Wienerberger Baustoffindustri
Can any of the company-specific risk be diversified away by investing in both Anhui Conch and Wienerberger Baustoffindustri 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 Anhui Conch and Wienerberger Baustoffindustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Conch Cement and Wienerberger Baustoffindustrie, you can compare the effects of market volatilities on Anhui Conch and Wienerberger Baustoffindustri 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 Anhui Conch with a short position of Wienerberger Baustoffindustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and Wienerberger Baustoffindustri.
Diversification Opportunities for Anhui Conch and Wienerberger Baustoffindustri
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Wienerberger is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and Wienerberger Baustoffindustrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger Baustoffindustri and Anhui Conch 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 Anhui Conch Cement are associated (or correlated) with Wienerberger Baustoffindustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger Baustoffindustri has no effect on the direction of Anhui Conch i.e., Anhui Conch and Wienerberger Baustoffindustri go up and down completely randomly.
Pair Corralation between Anhui Conch and Wienerberger Baustoffindustri
Assuming the 90 days horizon Anhui Conch Cement is expected to under-perform the Wienerberger Baustoffindustri. In addition to that, Anhui Conch is 1.05 times more volatile than Wienerberger Baustoffindustrie. It trades about -0.07 of its total potential returns per unit of risk. Wienerberger Baustoffindustrie is currently generating about -0.02 per unit of volatility. If you would invest 598.00 in Wienerberger Baustoffindustrie on August 30, 2024 and sell it today you would lose (16.00) from holding Wienerberger Baustoffindustrie or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Conch Cement vs. Wienerberger Baustoffindustrie
Performance |
| Timeline |
| Anhui Conch Cement |
| Wienerberger Baustoffindustri |
Anhui Conch and Wienerberger Baustoffindustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and Wienerberger Baustoffindustri
The main advantage of trading using opposite Anhui Conch and Wienerberger Baustoffindustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch position performs unexpectedly, Wienerberger Baustoffindustri 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 Wienerberger Baustoffindustri will offset losses from the drop in Wienerberger Baustoffindustri's long position.| Anhui Conch vs. Xinyi Glass Holdings | Anhui Conch vs. CEMATRIX | Anhui Conch vs. CEMEX SAB de | Anhui Conch vs. China National Building |
| Wienerberger Baustoffindustri vs. Xinyi Glass Holdings | Wienerberger Baustoffindustri vs. CEMATRIX | Wienerberger Baustoffindustri vs. CEMEX SAB de | Wienerberger Baustoffindustri vs. China National Building |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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