Correlation Between Shandong Homey and China Aluminum
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By analyzing existing cross correlation between Shandong Homey Aquatic and China Aluminum International, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and China Aluminum.
Diversification Opportunities for Shandong Homey and China Aluminum
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and China Aluminum go up and down completely randomly.
Pair Corralation between Shandong Homey and China Aluminum
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 1.75 times more return on investment than China Aluminum. However, Shandong Homey is 1.75 times more volatile than China Aluminum International. It trades about 0.11 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.05 per unit of risk. If you would invest 150.00 in Shandong Homey Aquatic on November 2, 2024 and sell it today you would earn a total of 66.00 from holding Shandong Homey Aquatic or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. China Aluminum International
Performance |
| Timeline |
| Shandong Homey Aquatic |
| China Aluminum Inter |
Shandong Homey and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and China Aluminum
The main advantage of trading using opposite Shandong Homey and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Allied Machinery Co | Shandong Homey vs. Shanghai Jinfeng Wine | Shandong Homey vs. Jinling Hotel Corp | Shandong Homey vs. Xiamen Jihong Package |
| China Aluminum vs. Pinlive Foods Co | China Aluminum vs. Xiwang Foodstuffs Co | China Aluminum vs. Shantou Wanshun Package | China Aluminum vs. Gan Yuan Foods |
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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