Correlation Between Zhejiang Kingland and China Aluminum
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and China Aluminum International, you can compare the effects of market volatilities on Zhejiang Kingland and China Aluminum 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 Zhejiang Kingland with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and China Aluminum.
Diversification Opportunities for Zhejiang Kingland and China Aluminum
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter and Zhejiang Kingland 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 Zhejiang Kingland Pipeline are associated (or correlated) with China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and China Aluminum go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and China Aluminum
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.67 times more return on investment than China Aluminum. However, Zhejiang Kingland Pipeline is 1.48 times less risky than China Aluminum. It trades about 0.09 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.08 per unit of risk. If you would invest 574.00 in Zhejiang Kingland Pipeline on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Zhejiang Kingland Pipeline or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. China Aluminum International
Performance |
| Timeline |
| Zhejiang Kingland |
| China Aluminum Inter |
Zhejiang Kingland and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and China Aluminum
The main advantage of trading using opposite Zhejiang Kingland and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum's long position.| Zhejiang Kingland vs. Cicc Fund Management | Zhejiang Kingland vs. JCHX Mining Management | Zhejiang Kingland vs. Fuda Alloy Materials | Zhejiang Kingland vs. AVIC Fund Management |
| China Aluminum vs. HeNan Splendor Science | China Aluminum vs. Ningxia Younglight Chemicals | China Aluminum vs. Nexchip Semiconductor Corp | China Aluminum vs. Union Semiconductor 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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