Correlation Between Aluminum Corp and Anhui Gujing
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By analyzing existing cross correlation between Aluminum Corp of and Anhui Gujing Distillery, you can compare the effects of market volatilities on Aluminum Corp and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Anhui Gujing.
Diversification Opportunities for Aluminum Corp and Anhui Gujing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Anhui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Anhui Gujing go up and down completely randomly.
Pair Corralation between Aluminum Corp and Anhui Gujing
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Anhui Gujing. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.12 times less risky than Anhui Gujing. The stock trades about -0.21 of its potential returns per unit of risk. The Anhui Gujing Distillery is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 19,930 in Anhui Gujing Distillery on August 28, 2024 and sell it today you would lose (1,239) from holding Anhui Gujing Distillery or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Aluminum Corp |
| Anhui Gujing Distillery |
Aluminum Corp and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Anhui Gujing
The main advantage of trading using opposite Aluminum Corp and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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