Correlation Between Rongsheng Petrochemical and Aluminum Corp
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By analyzing existing cross correlation between Rongsheng Petrochemical Co and Aluminum Corp of, you can compare the effects of market volatilities on Rongsheng Petrochemical 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 Rongsheng Petrochemical with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongsheng Petrochemical and Aluminum Corp.
Diversification Opportunities for Rongsheng Petrochemical and Aluminum Corp
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rongsheng and Aluminum is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Rongsheng Petrochemical Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Rongsheng Petrochemical 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 Rongsheng Petrochemical Co 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 Rongsheng Petrochemical i.e., Rongsheng Petrochemical and Aluminum Corp go up and down completely randomly.
Pair Corralation between Rongsheng Petrochemical and Aluminum Corp
Assuming the 90 days trading horizon Rongsheng Petrochemical Co is expected to generate 0.59 times more return on investment than Aluminum Corp. However, Rongsheng Petrochemical Co is 1.69 times less risky than Aluminum Corp. It trades about -0.01 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 965.00 in Rongsheng Petrochemical Co on August 28, 2024 and sell it today you would lose (5.00) from holding Rongsheng Petrochemical Co or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongsheng Petrochemical Co vs. Aluminum Corp of
Performance |
| Timeline |
| Rongsheng Petrochemical |
| Aluminum Corp |
Rongsheng Petrochemical and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongsheng Petrochemical and Aluminum Corp
The main advantage of trading using opposite Rongsheng Petrochemical and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongsheng Petrochemical 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.| Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Wanhua Chemical Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Shandong Gold Mining |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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