Correlation Between Shanxi Xishan and Aluminum Corp
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By analyzing existing cross correlation between Shanxi Xishan Coal and Aluminum Corp of, you can compare the effects of market volatilities on Shanxi Xishan 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 Shanxi Xishan with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Xishan and Aluminum Corp.
Diversification Opportunities for Shanxi Xishan and Aluminum Corp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanxi and Aluminum is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Xishan Coal and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Shanxi Xishan 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 Shanxi Xishan Coal 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 Shanxi Xishan i.e., Shanxi Xishan and Aluminum Corp go up and down completely randomly.
Pair Corralation between Shanxi Xishan and Aluminum Corp
Assuming the 90 days trading horizon Shanxi Xishan Coal is expected to generate 0.55 times more return on investment than Aluminum Corp. However, Shanxi Xishan Coal is 1.83 times less risky than Aluminum Corp. It trades about -0.18 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.21 per unit of risk. If you would invest 875.00 in Shanxi Xishan Coal on August 28, 2024 and sell it today you would lose (49.00) from holding Shanxi Xishan Coal or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Xishan Coal vs. Aluminum Corp of
Performance |
| Timeline |
| Shanxi Xishan Coal |
| Aluminum Corp |
Shanxi Xishan and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Xishan and Aluminum Corp
The main advantage of trading using opposite Shanxi Xishan and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Xishan 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.| Shanxi Xishan vs. Zhejiang Kingland Pipeline | Shanxi Xishan vs. Xiangyang Automobile Bearing | Shanxi Xishan vs. Suzhou Novoprotein Scientific | Shanxi Xishan vs. COL Digital Publishing |
| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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