Correlation Between Jizhong Energy and Aluminum Corp
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By analyzing existing cross correlation between Jizhong Energy Resources and Aluminum Corp of, you can compare the effects of market volatilities on Jizhong Energy 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 Jizhong Energy with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jizhong Energy and Aluminum Corp.
Diversification Opportunities for Jizhong Energy and Aluminum Corp
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jizhong and Aluminum is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jizhong Energy Resources and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Jizhong Energy 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 Jizhong Energy Resources 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 Jizhong Energy i.e., Jizhong Energy and Aluminum Corp go up and down completely randomly.
Pair Corralation between Jizhong Energy and Aluminum Corp
Assuming the 90 days trading horizon Jizhong Energy is expected to generate 2.01 times less return on investment than Aluminum Corp. But when comparing it to its historical volatility, Jizhong Energy Resources is 1.38 times less risky than Aluminum Corp. It trades about 0.04 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Aluminum Corp of on August 31, 2024 and sell it today you would earn a total of 286.00 from holding Aluminum Corp of or generate 61.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Jizhong Energy Resources vs. Aluminum Corp of
Performance |
| Timeline |
| Jizhong Energy Resources |
| Aluminum Corp |
Jizhong Energy and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jizhong Energy and Aluminum Corp
The main advantage of trading using opposite Jizhong Energy and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jizhong Energy 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.| Jizhong Energy vs. Allwin Telecommunication Co | Jizhong Energy vs. Xiangyang Automobile Bearing | Jizhong Energy vs. Union Semiconductor Co | Jizhong Energy vs. Shanghai Metersbonwe FashionAccessories |
| Aluminum Corp vs. Dr Peng Telecom | Aluminum Corp vs. Shandong Polymer Biochemicals | Aluminum Corp vs. Sunwave Communications Co | Aluminum Corp vs. Sinomach Automobile 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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