Correlation Between ANGANG STEEL and United States
Can any of the company-specific risk be diversified away by investing in both ANGANG STEEL and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on ANGANG STEEL and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGANG STEEL and United States.
Diversification Opportunities for ANGANG STEEL and United States
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANGANG and United is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANGANG STEEL H and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of ANGANG STEEL i.e., ANGANG STEEL and United States go up and down completely randomly.
Pair Corralation between ANGANG STEEL and United States
Assuming the 90 days trading horizon ANGANG STEEL is expected to generate 2.01 times less return on investment than United States. In addition to that, ANGANG STEEL is 1.66 times more volatile than United States Steel. It trades about 0.08 of its total potential returns per unit of risk. United States Steel is currently generating about 0.28 per unit of volatility. If you would invest 3,190 in United States Steel on November 8, 2024 and sell it today you would earn a total of 428.00 from holding United States Steel or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ANGANG STEEL H vs. United States Steel
Performance |
| Timeline |
| ANGANG STEEL H |
| United States Steel |
ANGANG STEEL and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGANG STEEL and United States
The main advantage of trading using opposite ANGANG STEEL and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGANG STEEL position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc | ANGANG STEEL vs. Apple Inc |
| United States vs. GRIFFIN MINING LTD | United States vs. Yuexiu Transport Infrastructure | United States vs. East Africa Metals | United States vs. ARDAGH METAL PACDL 0001 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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