Correlation Between ANGANG STEEL and Globex Mining
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and Globex Mining 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 Globex Mining 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 Globex Mining Enterprises, you can compare the effects of market volatilities on ANGANG STEEL and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and Globex Mining.
Diversification Opportunities for ANGANG STEEL and Globex Mining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANGANG and Globex is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and Globex Mining go up and down completely randomly.
Pair Corralation between ANGANG STEEL and Globex Mining
Assuming the 90 days trading horizon ANGANG STEEL is expected to generate 3.69 times less return on investment than Globex Mining. In addition to that, ANGANG STEEL is 1.38 times more volatile than Globex Mining Enterprises. It trades about 0.09 of its total potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.45 per unit of volatility. If you would invest 79.00 in Globex Mining Enterprises on November 7, 2024 and sell it today you would earn a total of 23.00 from holding Globex Mining Enterprises or generate 29.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGANG STEEL H vs. Globex Mining Enterprises
Performance |
| Timeline |
| ANGANG STEEL H |
| Globex Mining Enterprises |
ANGANG STEEL and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and Globex Mining
The main advantage of trading using opposite ANGANG STEEL and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
| Globex Mining vs. China Datang | Globex Mining vs. Pure Storage | Globex Mining vs. EMBARK EDUCATION LTD | Globex Mining vs. DATANG INTL POW |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |