Correlation Between China Aluminum and Jiangsu Pacific
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By analyzing existing cross correlation between China Aluminum International and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on China Aluminum and Jiangsu Pacific 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 Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Jiangsu Pacific.
Diversification Opportunities for China Aluminum and Jiangsu Pacific
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of China Aluminum i.e., China Aluminum and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between China Aluminum and Jiangsu Pacific
Assuming the 90 days trading horizon China Aluminum International is expected to generate 0.77 times more return on investment than Jiangsu Pacific. However, China Aluminum International is 1.29 times less risky than Jiangsu Pacific. It trades about -0.46 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.36 per unit of risk. If you would invest 479.00 in China Aluminum International on October 14, 2024 and sell it today you would lose (71.00) from holding China Aluminum International or give up 14.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| China Aluminum Inter |
| Jiangsu Pacific Quartz |
China Aluminum and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Jiangsu Pacific
The main advantage of trading using opposite China Aluminum and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| China Aluminum vs. Zhengzhou Coal Mining | China Aluminum vs. Xingguang Agricultural Mach | China Aluminum vs. Guangdong Jingyi Metal | China Aluminum vs. Anhui Huilong Agricultural |
| Jiangsu Pacific vs. Guangzhou Dongfang Hotel | Jiangsu Pacific vs. Eastroc Beverage Group | Jiangsu Pacific vs. SSAW Hotels Resorts | Jiangsu Pacific vs. Chongqing Brewery Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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