Correlation Between Bohai Leasing and Aluminum Corp
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By analyzing existing cross correlation between Bohai Leasing Co and Aluminum Corp of, you can compare the effects of market volatilities on Bohai Leasing and Aluminum Corp 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 Bohai Leasing with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Aluminum Corp.
Diversification Opportunities for Bohai Leasing and Aluminum Corp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bohai and Aluminum is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Aluminum Corp go up and down completely randomly.
Pair Corralation between Bohai Leasing and Aluminum Corp
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 1.29 times more return on investment than Aluminum Corp. However, Bohai Leasing is 1.29 times more volatile than Aluminum Corp of. It trades about 0.07 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.07 per unit of risk. If you would invest 219.00 in Bohai Leasing Co on October 16, 2024 and sell it today you would earn a total of 121.00 from holding Bohai Leasing Co or generate 55.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Aluminum Corp of
Performance |
| Timeline |
| Bohai Leasing |
| Aluminum Corp |
Bohai Leasing and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Aluminum Corp
The main advantage of trading using opposite Bohai Leasing and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Bohai Leasing vs. Runjian Communication Co | Bohai Leasing vs. Chengdu Xinzhu RoadBridge | Bohai Leasing vs. Hunan TV Broadcast | Bohai Leasing vs. Nanjing Putian Telecommunications |
| Aluminum Corp vs. Anhui Transport Consulting | Aluminum Corp vs. Xiwang Foodstuffs Co | Aluminum Corp vs. Jiangsu Broadcasting Cable | Aluminum Corp vs. Jiahe Foods Industry |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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