Correlation Between ANGANG STEEL and HUTCHISON TELECOMM
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and HUTCHISON TELECOMM 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 HUTCHISON TELECOMM 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 HUTCHISON TELECOMM, you can compare the effects of market volatilities on ANGANG STEEL and HUTCHISON TELECOMM 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 HUTCHISON TELECOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and HUTCHISON TELECOMM.
Diversification Opportunities for ANGANG STEEL and HUTCHISON TELECOMM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANGANG and HUTCHISON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and HUTCHISON TELECOMM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHISON TELECOMM 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 HUTCHISON TELECOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHISON TELECOMM has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and HUTCHISON TELECOMM go up and down completely randomly.
Pair Corralation between ANGANG STEEL and HUTCHISON TELECOMM
Assuming the 90 days trading horizon ANGANG STEEL H is expected to generate 0.67 times more return on investment than HUTCHISON TELECOMM. However, ANGANG STEEL H is 1.49 times less risky than HUTCHISON TELECOMM. It trades about -0.01 of its potential returns per unit of risk. HUTCHISON TELECOMM is currently generating about 0.0 per unit of risk. If you would invest 30.00 in ANGANG STEEL H on November 9, 2024 and sell it today you would lose (11.00) from holding ANGANG STEEL H or give up 36.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGANG STEEL H vs. HUTCHISON TELECOMM
Performance |
| Timeline |
| ANGANG STEEL H |
| HUTCHISON TELECOMM |
ANGANG STEEL and HUTCHISON TELECOMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and HUTCHISON TELECOMM
The main advantage of trading using opposite ANGANG STEEL and HUTCHISON TELECOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, HUTCHISON TELECOMM 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 HUTCHISON TELECOMM will offset losses from the drop in HUTCHISON TELECOMM's long position.| ANGANG STEEL vs. TRAVEL LEISURE DL 01 | ANGANG STEEL vs. Playtech plc | ANGANG STEEL vs. Gaming and Leisure | ANGANG STEEL vs. PSI Software AG |
| HUTCHISON TELECOMM vs. BORR DRILLING NEW | HUTCHISON TELECOMM vs. Boyd Gaming | HUTCHISON TELECOMM vs. GAMESTOP | HUTCHISON TELECOMM vs. Scientific Games |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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