Correlation Between ANGANG STEEL and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and SQUIRREL MEDIA 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 ANGANG STEEL and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGANG STEEL H and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on ANGANG STEEL and SQUIRREL MEDIA 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 ANGANG STEEL with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and SQUIRREL MEDIA.
Diversification Opportunities for ANGANG STEEL and SQUIRREL MEDIA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGANG and SQUIRREL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and ANGANG STEEL 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 ANGANG STEEL H are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between ANGANG STEEL and SQUIRREL MEDIA
Assuming the 90 days trading horizon ANGANG STEEL is expected to generate 19.96 times less return on investment than SQUIRREL MEDIA. In addition to that, ANGANG STEEL is 1.09 times more volatile than SQUIRREL MEDIA SA. It trades about 0.01 of its total potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.28 per unit of volatility. If you would invest 120.00 in SQUIRREL MEDIA SA on October 19, 2024 and sell it today you would earn a total of 15.00 from holding SQUIRREL MEDIA SA or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
ANGANG STEEL H vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| ANGANG STEEL H |
| SQUIRREL MEDIA SA |
ANGANG STEEL and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and SQUIRREL MEDIA
The main advantage of trading using opposite ANGANG STEEL and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| ANGANG STEEL vs. Tianjin Capital Environmental | ANGANG STEEL vs. INSURANCE AUST GRP | ANGANG STEEL vs. MOUNT GIBSON IRON | ANGANG STEEL vs. CALTAGIRONE EDITORE |
| SQUIRREL MEDIA vs. ANGANG STEEL H | SQUIRREL MEDIA vs. SPORT LISBOA E | SQUIRREL MEDIA vs. Nippon Steel | SQUIRREL MEDIA vs. Xiwang Special Steel |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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