Correlation Between Fujian Oriental and Aluminum Corp
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By analyzing existing cross correlation between Fujian Oriental Silver and Aluminum Corp of, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Aluminum Corp.
Diversification Opportunities for Fujian Oriental and Aluminum Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Aluminum is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Aluminum Corp go up and down completely randomly.
Pair Corralation between Fujian Oriental and Aluminum Corp
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Aluminum Corp. In addition to that, Fujian Oriental is 1.65 times more volatile than Aluminum Corp of. It trades about -0.11 of its total potential returns per unit of risk. Aluminum Corp of is currently generating about -0.02 per unit of volatility. If you would invest 763.00 in Aluminum Corp of on September 1, 2024 and sell it today you would lose (11.00) from holding Aluminum Corp of or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Aluminum Corp of
Performance |
| Timeline |
| Fujian Oriental Silver |
| Aluminum Corp |
Fujian Oriental and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Aluminum Corp
The main advantage of trading using opposite Fujian Oriental and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Harvest Fund Management | Fujian Oriental vs. Qingdao Foods Co | Fujian Oriental vs. Shantou Wanshun Package | Fujian Oriental vs. Beijing Sanyuan Foods |
| Aluminum Corp vs. AVIC Fund Management | Aluminum Corp vs. Lutian Machinery Co | Aluminum Corp vs. Allied Machinery Co | Aluminum Corp vs. Anhui Huilong Agricultural |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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