Correlation Between ANGANG STEEL and Fortinet
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and Fortinet 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 Fortinet 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 Fortinet, you can compare the effects of market volatilities on ANGANG STEEL and Fortinet 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 Fortinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and Fortinet.
Diversification Opportunities for ANGANG STEEL and Fortinet
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANGANG and Fortinet is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet 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 Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and Fortinet go up and down completely randomly.
Pair Corralation between ANGANG STEEL and Fortinet
Assuming the 90 days trading horizon ANGANG STEEL is expected to generate 3.34 times less return on investment than Fortinet. In addition to that, ANGANG STEEL is 2.16 times more volatile than Fortinet. It trades about 0.02 of its total potential returns per unit of risk. Fortinet is currently generating about 0.11 per unit of volatility. If you would invest 8,844 in Fortinet on October 25, 2024 and sell it today you would earn a total of 538.00 from holding Fortinet or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGANG STEEL H vs. Fortinet
Performance |
| Timeline |
| ANGANG STEEL H |
| Fortinet |
ANGANG STEEL and Fortinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and Fortinet
The main advantage of trading using opposite ANGANG STEEL and Fortinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, Fortinet 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 Fortinet will offset losses from the drop in Fortinet's long position.| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
| Fortinet vs. Firan Technology Group | Fortinet vs. X FAB Silicon Foundries | Fortinet vs. AECOM TECHNOLOGY | Fortinet vs. ANGANG STEEL H |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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