Correlation Between Henan Shuanghui and Aluminum Corp
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By analyzing existing cross correlation between Henan Shuanghui Investment and Aluminum Corp of, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Aluminum Corp.
Diversification Opportunities for Henan Shuanghui and Aluminum Corp
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Henan and Aluminum is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 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 Henan Shuanghui i.e., Henan Shuanghui and Aluminum Corp go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Aluminum Corp
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 5.35 times less return on investment than Aluminum Corp. But when comparing it to its historical volatility, Henan Shuanghui Investment is 1.84 times less risky than Aluminum Corp. It trades about 0.02 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 469.00 in Aluminum Corp of on September 3, 2024 and sell it today you would earn a total of 283.00 from holding Aluminum Corp of or generate 60.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Aluminum Corp of
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Aluminum Corp |
Henan Shuanghui and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Aluminum Corp
The main advantage of trading using opposite Henan Shuanghui and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Markor International Home | Henan Shuanghui vs. Harbin Hatou Investment | Henan Shuanghui vs. Vohringer Home Technology | Henan Shuanghui vs. Chengdu Xingrong Investment |
| Aluminum Corp vs. ROPEOK Technology Group | Aluminum Corp vs. Kingsignal Technology Co | Aluminum Corp vs. Northking Information Technology | Aluminum Corp vs. Henan Shuanghui Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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