Correlation Between Cinda Securities and China Aluminum
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By analyzing existing cross correlation between Cinda Securities Co and China Aluminum International, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and China Aluminum.
Diversification Opportunities for Cinda Securities and China Aluminum
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cinda and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co 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 Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and China Aluminum go up and down completely randomly.
Pair Corralation between Cinda Securities and China Aluminum
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.27 times more return on investment than China Aluminum. However, Cinda Securities is 1.27 times more volatile than China Aluminum International. It trades about 0.04 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.01 per unit of risk. If you would invest 1,179 in Cinda Securities Co on September 13, 2024 and sell it today you would earn a total of 417.00 from holding Cinda Securities Co or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.38% |
| Values | Daily Returns |
Cinda Securities Co vs. China Aluminum International
Performance |
| Timeline |
| Cinda Securities |
| China Aluminum Inter |
Cinda Securities and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and China Aluminum
The main advantage of trading using opposite Cinda Securities and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China State Construction | Cinda Securities vs. China Railway Group |
| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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