Correlation Between Aluminum Corp and Jiugui Liquor
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By analyzing existing cross correlation between Aluminum Corp of and Jiugui Liquor Co, you can compare the effects of market volatilities on Aluminum Corp and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Jiugui Liquor.
Diversification Opportunities for Aluminum Corp and Jiugui Liquor
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aluminum and Jiugui is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Aluminum Corp and Jiugui Liquor
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.9 times more return on investment than Jiugui Liquor. However, Aluminum Corp of is 1.11 times less risky than Jiugui Liquor. It trades about 0.26 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.1 per unit of risk. If you would invest 718.00 in Aluminum Corp of on November 5, 2024 and sell it today you would earn a total of 58.00 from holding Aluminum Corp of or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Jiugui Liquor Co
Performance |
| Timeline |
| Aluminum Corp |
| Jiugui Liquor |
Aluminum Corp and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Jiugui Liquor
The main advantage of trading using opposite Aluminum Corp and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Shandong Gold Mining |
| Jiugui Liquor vs. Industrial and Commercial | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. China Construction Bank | Jiugui Liquor 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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