Correlation Between Anyang Iron and TongFu Microelectronics
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By analyzing existing cross correlation between Anyang Iron Steel and TongFu Microelectronics Co, you can compare the effects of market volatilities on Anyang Iron and TongFu Microelectronics 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 Anyang Iron with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and TongFu Microelectronics.
Diversification Opportunities for Anyang Iron and TongFu Microelectronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anyang and TongFu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Anyang Iron 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 Anyang Iron Steel are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Anyang Iron i.e., Anyang Iron and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Anyang Iron and TongFu Microelectronics
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.5 times more return on investment than TongFu Microelectronics. However, Anyang Iron is 1.5 times more volatile than TongFu Microelectronics Co. It trades about -0.13 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.22 per unit of risk. If you would invest 208.00 in Anyang Iron Steel on October 7, 2024 and sell it today you would lose (29.00) from holding Anyang Iron Steel or give up 13.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Anyang Iron Steel vs. TongFu Microelectronics Co
Performance |
Timeline |
Anyang Iron Steel |
TongFu Microelectronics |
Anyang Iron and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anyang Iron and TongFu Microelectronics
The main advantage of trading using opposite Anyang Iron and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Hoshine Silicon Ind |
TongFu Microelectronics vs. PetroChina Co Ltd | TongFu Microelectronics vs. Gansu Jiu Steel | TongFu Microelectronics vs. Aba Chemicals Corp | TongFu Microelectronics vs. Yes Optoelectronics Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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