Correlation Between China Aluminum and Soyea Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Aluminum International and Soyea Technology Co, you can compare the effects of market volatilities on China Aluminum and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Soyea Technology.
Diversification Opportunities for China Aluminum and Soyea Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Soyea is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of China Aluminum i.e., China Aluminum and Soyea Technology go up and down completely randomly.
Pair Corralation between China Aluminum and Soyea Technology
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Soyea Technology. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 1.62 times less risky than Soyea Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Soyea Technology Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 482.00 in Soyea Technology Co on September 4, 2024 and sell it today you would earn a total of 90.00 from holding Soyea Technology Co or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Soyea Technology Co
Performance |
| Timeline |
| China Aluminum Inter |
| Soyea Technology |
China Aluminum and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Soyea Technology
The main advantage of trading using opposite China Aluminum and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| China Aluminum vs. Shanghai Yanpu Metal | China Aluminum vs. Ningbo Thermal Power | China Aluminum vs. Ningbo MedicalSystem Biotechnology | China Aluminum vs. China Nonferrous Metal |
| Soyea Technology vs. China Aluminum International | Soyea Technology vs. Humanwell Healthcare Group | Soyea Technology vs. Ye Chiu Metal | Soyea Technology vs. Tianshan Aluminum Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |