Correlation Between SG Micro and China Aluminum
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By analyzing existing cross correlation between SG Micro Corp and China Aluminum International, you can compare the effects of market volatilities on SG Micro 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 SG Micro with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SG Micro and China Aluminum.
Diversification Opportunities for SG Micro and China Aluminum
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 300661 and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SG Micro Corp 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 SG Micro 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 SG Micro Corp 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 SG Micro i.e., SG Micro and China Aluminum go up and down completely randomly.
Pair Corralation between SG Micro and China Aluminum
Assuming the 90 days trading horizon SG Micro Corp is expected to generate 1.58 times more return on investment than China Aluminum. However, SG Micro is 1.58 times more volatile than China Aluminum International. It trades about 0.02 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.04 per unit of risk. If you would invest 8,855 in SG Micro Corp on September 5, 2024 and sell it today you would earn a total of 34.00 from holding SG Micro Corp or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SG Micro Corp vs. China Aluminum International
Performance |
| Timeline |
| SG Micro Corp |
| China Aluminum Inter |
SG Micro and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SG Micro and China Aluminum
The main advantage of trading using opposite SG Micro and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SG Micro 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.| SG Micro vs. Cultural Investment Holdings | SG Micro vs. Gome Telecom Equipment | SG Micro vs. Bus Online Co | SG Micro vs. Holitech Technology Co |
| China Aluminum vs. China Life Insurance | China Aluminum vs. Cinda Securities Co | China Aluminum vs. Piotech Inc A | China Aluminum vs. Dongxing Sec 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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