Correlation Between Anyang Iron and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anyang Iron Steel and China State Construction, you can compare the effects of market volatilities on Anyang Iron and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and China State.
Diversification Opportunities for Anyang Iron and China State
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anyang and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Anyang Iron i.e., Anyang Iron and China State go up and down completely randomly.
Pair Corralation between Anyang Iron and China State
Assuming the 90 days trading horizon Anyang Iron is expected to generate 1.16 times less return on investment than China State. In addition to that, Anyang Iron is 1.35 times more volatile than China State Construction. It trades about 0.01 of its total potential returns per unit of risk. China State Construction is currently generating about 0.02 per unit of volatility. If you would invest 526.00 in China State Construction on September 23, 2024 and sell it today you would earn a total of 65.00 from holding China State Construction or generate 12.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anyang Iron Steel vs. China State Construction
Performance |
Timeline |
Anyang Iron Steel |
China State Construction |
Anyang Iron and China State Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anyang Iron and China State
The main advantage of trading using opposite Anyang Iron and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
China State vs. Lotus Health Group | China State vs. Penyao Environmental Protection | China State vs. Shenzhen MYS Environmental | China State vs. Anyang Iron Steel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
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 |