Correlation Between Guangdong Jingyi and Aluminum Corp
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Aluminum Corp of, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Aluminum Corp.
Diversification Opportunities for Guangdong Jingyi and Aluminum Corp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Aluminum is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Aluminum Corp go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Aluminum Corp
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.04 times more return on investment than Aluminum Corp. However, Guangdong Jingyi is 1.04 times more volatile than Aluminum Corp of. It trades about 0.24 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 632.00 in Guangdong Jingyi Metal on August 27, 2024 and sell it today you would earn a total of 88.00 from holding Guangdong Jingyi Metal or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Aluminum Corp of
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Aluminum Corp |
Guangdong Jingyi and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Aluminum Corp
The main advantage of trading using opposite Guangdong Jingyi and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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