Correlation Between China Aluminum and Tongling Nonferrous
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By analyzing existing cross correlation between China Aluminum International and Tongling Nonferrous Metals, you can compare the effects of market volatilities on China Aluminum and Tongling Nonferrous 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 China Aluminum with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Tongling Nonferrous.
Diversification Opportunities for China Aluminum and Tongling Nonferrous
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Tongling is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and China Aluminum 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 China Aluminum International are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of China Aluminum i.e., China Aluminum and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between China Aluminum and Tongling Nonferrous
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Tongling Nonferrous. In addition to that, China Aluminum is 1.47 times more volatile than Tongling Nonferrous Metals. It trades about -0.31 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.15 per unit of volatility. If you would invest 340.00 in Tongling Nonferrous Metals on October 18, 2024 and sell it today you would lose (13.00) from holding Tongling Nonferrous Metals or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| China Aluminum Inter |
| Tongling Nonferrous |
China Aluminum and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Tongling Nonferrous
The main advantage of trading using opposite China Aluminum and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| China Aluminum vs. Dongfeng Automobile Co | China Aluminum vs. Qiaoyin Environmental Tech | China Aluminum vs. Wuhan Yangtze Communication | China Aluminum vs. Nanjing Putian Telecommunications |
| Tongling Nonferrous vs. China Aluminum International | Tongling Nonferrous vs. Peoples Insurance of | Tongling Nonferrous vs. Guangdong Jingyi Metal | Tongling Nonferrous vs. Chongqing Shunbo Aluminum |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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