Correlation Between Henan Shuanghui and China Aluminum
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By analyzing existing cross correlation between Henan Shuanghui Investment and China Aluminum International, you can compare the effects of market volatilities on Henan Shuanghui and China Aluminum 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 Henan Shuanghui with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and China Aluminum.
Diversification Opportunities for Henan Shuanghui and China Aluminum
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henan and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and China Aluminum go up and down completely randomly.
Pair Corralation between Henan Shuanghui and China Aluminum
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.69 times more return on investment than China Aluminum. However, Henan Shuanghui Investment is 1.44 times less risky than China Aluminum. It trades about 0.16 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.17 per unit of risk. If you would invest 2,451 in Henan Shuanghui Investment on October 30, 2024 and sell it today you would earn a total of 185.00 from holding Henan Shuanghui Investment or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. China Aluminum International
Performance |
| Timeline |
| Henan Shuanghui Inve |
| China Aluminum Inter |
Henan Shuanghui and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and China Aluminum
The main advantage of trading using opposite Henan Shuanghui and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, China Aluminum 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 Aluminum will offset losses from the drop in China Aluminum's long position.| Henan Shuanghui vs. Kweichow Moutai Co | Henan Shuanghui vs. Contemporary Amperex Technology | Henan Shuanghui vs. G bits Network Technology | Henan Shuanghui vs. Beijing Roborock Technology |
| China Aluminum vs. Industrial and Commercial | China Aluminum vs. China Construction Bank | China Aluminum vs. Agricultural Bank of | China Aluminum vs. Bank of China |
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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