Correlation Between Shenzhen MYS and Anyang Iron
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Anyang Iron Steel, you can compare the effects of market volatilities on Shenzhen MYS and Anyang Iron 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 Shenzhen MYS with a short position of Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Anyang Iron.
Diversification Opportunities for Shenzhen MYS and Anyang Iron
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Anyang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel and Shenzhen MYS 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 Shenzhen MYS Environmental are associated (or correlated) with Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Shenzhen MYS i.e., Shenzhen MYS and Anyang Iron go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Anyang Iron
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.01 times more return on investment than Anyang Iron. However, Shenzhen MYS is 1.01 times more volatile than Anyang Iron Steel. It trades about 0.06 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.03 per unit of risk. If you would invest 275.00 in Shenzhen MYS Environmental on September 20, 2024 and sell it today you would earn a total of 98.00 from holding Shenzhen MYS Environmental or generate 35.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen MYS Environmental vs. Anyang Iron Steel
Performance |
Timeline |
Shenzhen MYS Environ |
Anyang Iron Steel |
Shenzhen MYS and Anyang Iron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen MYS and Anyang Iron
The main advantage of trading using opposite Shenzhen MYS and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.Shenzhen MYS vs. Soyea Technology Co | Shenzhen MYS vs. Keeson Technology Corp | Shenzhen MYS vs. Will Semiconductor Co | Shenzhen MYS vs. Sportsoul Co Ltd |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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