Correlation Between China Aluminum and Gan Yuan
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By analyzing existing cross correlation between China Aluminum International and Gan Yuan Foods, you can compare the effects of market volatilities on China Aluminum and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Gan Yuan.
Diversification Opportunities for China Aluminum and Gan Yuan
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Gan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of China Aluminum i.e., China Aluminum and Gan Yuan go up and down completely randomly.
Pair Corralation between China Aluminum and Gan Yuan
Assuming the 90 days trading horizon China Aluminum International is expected to generate 0.68 times more return on investment than Gan Yuan. However, China Aluminum International is 1.46 times less risky than Gan Yuan. It trades about 0.17 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about -0.05 per unit of risk. If you would invest 421.00 in China Aluminum International on November 29, 2024 and sell it today you would earn a total of 18.00 from holding China Aluminum International or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Gan Yuan Foods
Performance |
| Timeline |
| China Aluminum Inter |
| Gan Yuan Foods |
China Aluminum and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Gan Yuan
The main advantage of trading using opposite China Aluminum and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| China Aluminum vs. SSAW Hotels Resorts | China Aluminum vs. China Life Insurance | China Aluminum vs. Gansu Huangtai Wine marketing | China Aluminum vs. Touchstone International Medical |
| Gan Yuan vs. Juneyao Airlines | Gan Yuan vs. Iat Automobile Technology | Gan Yuan vs. Digiwin Software Co | Gan Yuan vs. Hengli Industrial Development |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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