Correlation Between ANGANG STEEL and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS, you can compare the effects of market volatilities on ANGANG STEEL and CONAGRA FOODS 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 CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and CONAGRA FOODS.
Diversification Opportunities for ANGANG STEEL and CONAGRA FOODS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANGANG and CONAGRA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between ANGANG STEEL and CONAGRA FOODS
Assuming the 90 days trading horizon ANGANG STEEL H is expected to generate 2.74 times more return on investment than CONAGRA FOODS. However, ANGANG STEEL is 2.74 times more volatile than CONAGRA FOODS. It trades about 0.02 of its potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.27 per unit of risk. If you would invest 18.00 in ANGANG STEEL H on October 29, 2024 and sell it today you would earn a total of 0.00 from holding ANGANG STEEL H or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGANG STEEL H vs. CONAGRA FOODS
Performance |
| Timeline |
| ANGANG STEEL H |
| CONAGRA FOODS |
ANGANG STEEL and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and CONAGRA FOODS
The main advantage of trading using opposite ANGANG STEEL and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| ANGANG STEEL vs. Wizz Air Holdings | ANGANG STEEL vs. Canadian Utilities Limited | ANGANG STEEL vs. FAIR ISAAC | ANGANG STEEL vs. NORWEGIAN AIR SHUT |
| CONAGRA FOODS vs. National Health Investors | CONAGRA FOODS vs. MARKET VECTR RETAIL | CONAGRA FOODS vs. Acadia Healthcare | CONAGRA FOODS vs. EPSILON HEALTHCARE LTD |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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