Correlation Between Lushang Property and Aluminum Corp
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By analyzing existing cross correlation between Lushang Property Co and Aluminum Corp of, you can compare the effects of market volatilities on Lushang Property 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 Lushang Property with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Aluminum Corp.
Diversification Opportunities for Lushang Property and Aluminum Corp
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lushang and Aluminum is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property 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 Lushang Property 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 Lushang Property 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 Lushang Property i.e., Lushang Property and Aluminum Corp go up and down completely randomly.
Pair Corralation between Lushang Property and Aluminum Corp
Assuming the 90 days trading horizon Lushang Property Co is expected to generate 1.08 times more return on investment than Aluminum Corp. However, Lushang Property is 1.08 times more volatile than Aluminum Corp of. It trades about 0.06 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.05 per unit of risk. If you would invest 607.00 in Lushang Property Co on October 26, 2024 and sell it today you would earn a total of 98.00 from holding Lushang Property Co or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Lushang Property Co vs. Aluminum Corp of
Performance |
| Timeline |
| Lushang Property |
| Aluminum Corp |
Lushang Property and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Aluminum Corp
The main advantage of trading using opposite Lushang Property and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property 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.| Lushang Property vs. AVIC Fund Management | Lushang Property vs. Harvest Fund Management | Lushang Property vs. Jiujiang Shanshui Technology | Lushang Property vs. Cicc Fund Management |
| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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