Correlation Between ANGANG STEEL and Penta Ocean
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and Penta Ocean 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 Penta Ocean 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 Penta Ocean Construction Co, you can compare the effects of market volatilities on ANGANG STEEL and Penta Ocean 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 Penta Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and Penta Ocean.
Diversification Opportunities for ANGANG STEEL and Penta Ocean
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGANG and Penta is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and Penta Ocean Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Ocean Construc 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 Penta Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Ocean Construc has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and Penta Ocean go up and down completely randomly.
Pair Corralation between ANGANG STEEL and Penta Ocean
Assuming the 90 days trading horizon ANGANG STEEL H is expected to under-perform the Penta Ocean. In addition to that, ANGANG STEEL is 2.66 times more volatile than Penta Ocean Construction Co. It trades about -0.09 of its total potential returns per unit of risk. Penta Ocean Construction Co is currently generating about 0.19 per unit of volatility. If you would invest 380.00 in Penta Ocean Construction Co on October 23, 2024 and sell it today you would earn a total of 14.00 from holding Penta Ocean Construction Co or generate 3.68% 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. Penta Ocean Construction Co
Performance |
| Timeline |
| ANGANG STEEL H |
| Penta Ocean Construc |
ANGANG STEEL and Penta Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and Penta Ocean
The main advantage of trading using opposite ANGANG STEEL and Penta Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, Penta Ocean 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 Penta Ocean will offset losses from the drop in Penta Ocean's long position.| ANGANG STEEL vs. OPKO HEALTH | ANGANG STEEL vs. Wizz Air Holdings | ANGANG STEEL vs. PURETECH HEALTH PLC | ANGANG STEEL vs. Altair Engineering |
| Penta Ocean vs. Playa Hotels Resorts | Penta Ocean vs. INVITATION HOMES DL | Penta Ocean vs. NORTHEAST UTILITIES | Penta Ocean vs. United Utilities Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |