Correlation Between Dongxing Sec and China Aluminum
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By analyzing existing cross correlation between Dongxing Sec Co and China Aluminum International, you can compare the effects of market volatilities on Dongxing Sec and China Aluminum 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 Dongxing Sec with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and China Aluminum.
Diversification Opportunities for Dongxing Sec and China Aluminum
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and China Aluminum go up and down completely randomly.
Pair Corralation between Dongxing Sec and China Aluminum
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.33 times more return on investment than China Aluminum. However, Dongxing Sec is 1.33 times more volatile than China Aluminum International. It trades about 0.11 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.05 per unit of risk. If you would invest 821.00 in Dongxing Sec Co on September 5, 2024 and sell it today you would earn a total of 329.00 from holding Dongxing Sec Co or generate 40.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. China Aluminum International
Performance |
| Timeline |
| Dongxing Sec |
| China Aluminum Inter |
Dongxing Sec and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and China Aluminum
The main advantage of trading using opposite Dongxing Sec and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum's long position.| Dongxing Sec vs. Renxin New Material | Dongxing Sec vs. Road Environment Technology | Dongxing Sec vs. Suzhou Xingye Material | Dongxing Sec vs. Chengdu Xinzhu RoadBridge |
| China Aluminum vs. China Life Insurance | China Aluminum vs. Cinda Securities Co | China Aluminum vs. Piotech Inc A | China Aluminum vs. Dongxing Sec 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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