Correlation Between Jiangsu Yanghe and Aluminum Corp
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Aluminum Corp of, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Aluminum Corp.
Diversification Opportunities for Jiangsu Yanghe and Aluminum Corp
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Aluminum is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Aluminum Corp go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Aluminum Corp
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.96 times more return on investment than Aluminum Corp. However, Jiangsu Yanghe Brewery is 1.04 times less risky than Aluminum Corp. It trades about 0.07 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.07 per unit of risk. If you would invest 7,609 in Jiangsu Yanghe Brewery on August 28, 2024 and sell it today you would earn a total of 816.00 from holding Jiangsu Yanghe Brewery or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Aluminum Corp of
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Aluminum Corp |
Jiangsu Yanghe and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Aluminum Corp
The main advantage of trading using opposite Jiangsu Yanghe and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. BYD Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Industrial and Commercial |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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