Correlation Between China Aluminum and Zhengping RoadBridge
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By analyzing existing cross correlation between China Aluminum International and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on China Aluminum and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Zhengping RoadBridge.
Diversification Opportunities for China Aluminum and Zhengping RoadBridge
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhengping is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of China Aluminum i.e., China Aluminum and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between China Aluminum and Zhengping RoadBridge
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 2.81 times less risky than Zhengping RoadBridge. The stock trades about -0.24 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Zhengping RoadBridge Constr on October 25, 2024 and sell it today you would lose (31.00) from holding Zhengping RoadBridge Constr or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| China Aluminum Inter |
| Zhengping RoadBridge |
China Aluminum and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Zhengping RoadBridge
The main advantage of trading using opposite China Aluminum and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| China Aluminum vs. Kweichow Moutai Co | China Aluminum vs. Contemporary Amperex Technology | China Aluminum vs. Beijing Roborock Technology | China Aluminum vs. BYD Co Ltd |
| Zhengping RoadBridge vs. Kweichow Moutai Co | Zhengping RoadBridge vs. Contemporary Amperex Technology | Zhengping RoadBridge vs. Beijing Roborock Technology | Zhengping RoadBridge vs. BYD Co Ltd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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