Correlation Between Aluminum Corp and HanS Laser
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By analyzing existing cross correlation between Aluminum Corp of and HanS Laser Tech, you can compare the effects of market volatilities on Aluminum Corp and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and HanS Laser.
Diversification Opportunities for Aluminum Corp and HanS Laser
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and HanS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and HanS Laser go up and down completely randomly.
Pair Corralation between Aluminum Corp and HanS Laser
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the HanS Laser. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.98 times less risky than HanS Laser. The stock trades about -0.16 of its potential returns per unit of risk. The HanS Laser Tech is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,894 in HanS Laser Tech on September 12, 2024 and sell it today you would lose (184.00) from holding HanS Laser Tech or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aluminum Corp of vs. HanS Laser Tech
Performance |
| Timeline |
| Aluminum Corp |
| HanS Laser Tech |
Aluminum Corp and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and HanS Laser
The main advantage of trading using opposite Aluminum Corp and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co |
| HanS Laser vs. Agricultural Bank of | HanS Laser vs. Industrial and Commercial | HanS Laser vs. Bank of China | HanS Laser vs. PetroChina Co Ltd |
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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