Correlation Between Tradegate and ANGANG STEEL
Can any of the company-specific risk be diversified away by investing in both Tradegate and ANGANG STEEL 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 Tradegate and ANGANG STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and ANGANG STEEL H , you can compare the effects of market volatilities on Tradegate and ANGANG STEEL 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 Tradegate with a short position of ANGANG STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and ANGANG STEEL.
Diversification Opportunities for Tradegate and ANGANG STEEL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tradegate and ANGANG is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and ANGANG STEEL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGANG STEEL H and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with ANGANG STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGANG STEEL H has no effect on the direction of Tradegate i.e., Tradegate and ANGANG STEEL go up and down completely randomly.
Pair Corralation between Tradegate and ANGANG STEEL
Assuming the 90 days horizon Tradegate is expected to generate 804.14 times less return on investment than ANGANG STEEL. But when comparing it to its historical volatility, Tradegate AG Wertpapierhandelsbank is 8.76 times less risky than ANGANG STEEL. It trades about 0.0 of its potential returns per unit of risk. ANGANG STEEL H is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 17.00 in ANGANG STEEL H on November 9, 2024 and sell it today you would earn a total of 2.00 from holding ANGANG STEEL H or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. ANGANG STEEL H
Performance |
| Timeline |
| Tradegate AG Wertpap |
| ANGANG STEEL H |
Tradegate and ANGANG STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and ANGANG STEEL
The main advantage of trading using opposite Tradegate and ANGANG STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, ANGANG STEEL 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 ANGANG STEEL will offset losses from the drop in ANGANG STEEL's long position.| Tradegate vs. Chunghwa Telecom Co | Tradegate vs. URBAN OUTFITTERS | Tradegate vs. ADRIATIC METALS LS 013355 | Tradegate vs. Calibre Mining Corp |
| ANGANG STEEL vs. TRAVEL LEISURE DL 01 | ANGANG STEEL vs. Playtech plc | ANGANG STEEL vs. Gaming and Leisure | ANGANG STEEL vs. PSI Software AG |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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