Correlation Between Anhui Tongguan and Aluminum Corp
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By analyzing existing cross correlation between Anhui Tongguan Copper and Aluminum Corp of, you can compare the effects of market volatilities on Anhui Tongguan 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 Tongguan with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Aluminum Corp.
Diversification Opportunities for Anhui Tongguan and Aluminum Corp
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Aluminum is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper 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 Tongguan 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 Tongguan Copper 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 Tongguan i.e., Anhui Tongguan and Aluminum Corp go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Aluminum Corp
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 1.45 times more return on investment than Aluminum Corp. However, Anhui Tongguan is 1.45 times more volatile than Aluminum Corp of. It trades about 0.04 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.1 per unit of risk. If you would invest 1,073 in Anhui Tongguan Copper on October 24, 2024 and sell it today you would earn a total of 46.00 from holding Anhui Tongguan Copper or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Aluminum Corp of
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Aluminum Corp |
Anhui Tongguan and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Aluminum Corp
The main advantage of trading using opposite Anhui Tongguan and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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 Tongguan vs. Eit Environmental Development | Anhui Tongguan vs. Wuxi Xuelang Environmental | Anhui Tongguan vs. Fujian Nanwang Environment | Anhui Tongguan vs. Hangzhou Guotai Environmental |
| Aluminum Corp vs. Hubei Xingfa Chemicals | Aluminum Corp vs. Hefei Metalforming Mach | Aluminum Corp vs. Porton Fine Chemicals | Aluminum Corp vs. Anhui Tongguan Copper |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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