Correlation Between Aluminum Corp and Shengda Mining
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By analyzing existing cross correlation between Aluminum Corp of and Shengda Mining Co, you can compare the effects of market volatilities on Aluminum Corp and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shengda Mining.
Diversification Opportunities for Aluminum Corp and Shengda Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Shengda is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shengda Mining go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shengda Mining
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.72 times more return on investment than Shengda Mining. However, Aluminum Corp of is 1.39 times less risky than Shengda Mining. It trades about 0.06 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.03 per unit of risk. If you would invest 576.00 in Aluminum Corp of on September 14, 2024 and sell it today you would earn a total of 209.00 from holding Aluminum Corp of or generate 36.28% 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. Shengda Mining Co
Performance |
| Timeline |
| Aluminum Corp |
| Shengda Mining |
Aluminum Corp and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shengda Mining
The main advantage of trading using opposite Aluminum Corp and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Aluminum Corp vs. Shengda Mining Co | Aluminum Corp vs. Dareway Software Co | Aluminum Corp vs. Xizi Clean Energy | Aluminum Corp vs. JCHX Mining Management |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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