Correlation Between China Aluminum and Anshan Senyuan
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By analyzing existing cross correlation between China Aluminum International and Anshan Senyuan Road, you can compare the effects of market volatilities on China Aluminum and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Anshan Senyuan.
Diversification Opportunities for China Aluminum and Anshan Senyuan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Anshan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of China Aluminum i.e., China Aluminum and Anshan Senyuan go up and down completely randomly.
Pair Corralation between China Aluminum and Anshan Senyuan
Assuming the 90 days trading horizon China Aluminum International is expected to generate 0.48 times more return on investment than Anshan Senyuan. However, China Aluminum International is 2.07 times less risky than Anshan Senyuan. It trades about -0.48 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.33 per unit of risk. If you would invest 485.00 in China Aluminum International on October 16, 2024 and sell it today you would lose (73.00) from holding China Aluminum International or give up 15.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Aluminum International vs. Anshan Senyuan Road
Performance |
| Timeline |
| China Aluminum Inter |
| Anshan Senyuan Road |
China Aluminum and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Anshan Senyuan
The main advantage of trading using opposite China Aluminum and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| China Aluminum vs. China Asset Management | China Aluminum vs. Henan Shuanghui Investment | China Aluminum vs. Humanwell Healthcare Group | China Aluminum vs. Anhui Huaren Health |
| Anshan Senyuan vs. Tongyu Communication | Anshan Senyuan vs. Guangxi Wuzhou Communications | Anshan Senyuan vs. China Mobile Limited | Anshan Senyuan vs. Guangzhou Haige Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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