Correlation Between Aluminum Corp and Hunan Investment
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By analyzing existing cross correlation between Aluminum Corp of and Hunan Investment Group, you can compare the effects of market volatilities on Aluminum Corp and Hunan Investment 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 Aluminum Corp with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Hunan Investment.
Diversification Opportunities for Aluminum Corp and Hunan Investment
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Hunan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Aluminum Corp 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 Aluminum Corp of are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Hunan Investment go up and down completely randomly.
Pair Corralation between Aluminum Corp and Hunan Investment
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Hunan Investment. In addition to that, Aluminum Corp is 1.07 times more volatile than Hunan Investment Group. It trades about -0.01 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.11 per unit of volatility. If you would invest 433.00 in Hunan Investment Group on August 29, 2024 and sell it today you would earn a total of 151.00 from holding Hunan Investment Group or generate 34.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Hunan Investment Group
Performance |
| Timeline |
| Aluminum Corp |
| Hunan Investment |
Aluminum Corp and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Hunan Investment
The main advantage of trading using opposite Aluminum Corp and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou | Aluminum Corp vs. Jiangxi Ganfeng Lithium |
| Hunan Investment vs. PetroChina Co Ltd | Hunan Investment vs. China State Construction | Hunan Investment vs. China Mobile Limited | Hunan Investment vs. Industrial and Commercial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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