Correlation Between China Aluminum and Guangzhou KingTeller
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By analyzing existing cross correlation between China Aluminum International and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on China Aluminum and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Guangzhou KingTeller.
Diversification Opportunities for China Aluminum and Guangzhou KingTeller
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Guangzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of China Aluminum i.e., China Aluminum and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between China Aluminum and Guangzhou KingTeller
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 2.68 times less risky than Guangzhou KingTeller. The stock trades about -0.21 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 471.00 in Guangzhou KingTeller Technology on October 26, 2024 and sell it today you would lose (3.00) from holding Guangzhou KingTeller Technology or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| China Aluminum Inter |
| Guangzhou KingTeller |
China Aluminum and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Guangzhou KingTeller
The main advantage of trading using opposite China Aluminum and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| China Aluminum vs. Jiangxi Naipu Mining | China Aluminum vs. Jinhui Mining Co | China Aluminum vs. Shanghai V Test Semiconductor | China Aluminum vs. Xinjiang Baodi Mining |
| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. China Construction Bank |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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