Correlation Between Anhui Huilong and Aluminum Corp
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Aluminum Corp of, you can compare the effects of market volatilities on Anhui Huilong 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 Anhui Huilong with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Aluminum Corp.
Diversification Opportunities for Anhui Huilong and Aluminum Corp
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Aluminum is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Anhui Huilong 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 Anhui Huilong Agricultural 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 Anhui Huilong i.e., Anhui Huilong and Aluminum Corp go up and down completely randomly.
Pair Corralation between Anhui Huilong and Aluminum Corp
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 2.34 times more return on investment than Aluminum Corp. However, Anhui Huilong is 2.34 times more volatile than Aluminum Corp of. It trades about 0.19 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.02 per unit of risk. If you would invest 541.00 in Anhui Huilong Agricultural on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Anhui Huilong Agricultural or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Aluminum Corp of
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Aluminum Corp |
Anhui Huilong and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Aluminum Corp
The main advantage of trading using opposite Anhui Huilong and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong 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.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
| Aluminum Corp vs. AVIC Fund Management | Aluminum Corp vs. Lutian Machinery Co | Aluminum Corp vs. Allied Machinery Co | Aluminum Corp vs. Anhui Huilong Agricultural |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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