Correlation Between Chongqing Shunbo and China Aluminum
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and China Aluminum International, you can compare the effects of market volatilities on Chongqing Shunbo 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 Chongqing Shunbo with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and China Aluminum.
Diversification Opportunities for Chongqing Shunbo and China Aluminum
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum 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 Chongqing Shunbo 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 Chongqing Shunbo Aluminum 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 Chongqing Shunbo i.e., Chongqing Shunbo and China Aluminum go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and China Aluminum
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 1.37 times more return on investment than China Aluminum. However, Chongqing Shunbo is 1.37 times more volatile than China Aluminum International. It trades about 0.04 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.13 per unit of risk. If you would invest 649.00 in Chongqing Shunbo Aluminum on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Chongqing Shunbo Aluminum or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. China Aluminum International
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| China Aluminum Inter |
Chongqing Shunbo and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and China Aluminum
The main advantage of trading using opposite Chongqing Shunbo and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo 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.| Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Inner Mongolia BaoTou |
| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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