Correlation Between Industrial and China Aluminum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and China Aluminum International, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and China Aluminum.
Diversification Opportunities for Industrial and China Aluminum
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and China is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and China Aluminum go up and down completely randomly.
Pair Corralation between Industrial and China Aluminum
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.9 times more return on investment than China Aluminum. However, Industrial and Commercial is 1.11 times less risky than China Aluminum. It trades about -0.12 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.26 per unit of risk. If you would invest 692.00 in Industrial and Commercial on October 28, 2024 and sell it today you would lose (25.00) from holding Industrial and Commercial or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. China Aluminum International
Performance |
| Timeline |
| Industrial and Commercial |
| China Aluminum Inter |
Industrial and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and China Aluminum
The main advantage of trading using opposite Industrial and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Zhejiang JIULI Hi tech | Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Beingmate Baby Child | Industrial vs. FSPG Hi Tech Co |
| China Aluminum vs. Industrial and Commercial | China Aluminum vs. China Construction Bank | China Aluminum vs. Agricultural Bank of | China Aluminum vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |