Correlation Between Aluminum Corp and Shenzhen Coship
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By analyzing existing cross correlation between Aluminum Corp of and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Aluminum Corp and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shenzhen Coship.
Diversification Opportunities for Aluminum Corp and Shenzhen Coship
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aluminum and Shenzhen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shenzhen Coship
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.6 times more return on investment than Shenzhen Coship. However, Aluminum Corp of is 1.68 times less risky than Shenzhen Coship. It trades about 0.2 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.12 per unit of risk. If you would invest 728.00 in Aluminum Corp of on October 28, 2024 and sell it today you would earn a total of 59.00 from holding Aluminum Corp of or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Aluminum Corp |
| Shenzhen Coship Elec |
Aluminum Corp and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shenzhen Coship
The main advantage of trading using opposite Aluminum Corp and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship'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 |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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