Correlation Between Aluminum Corp and Guangzhou Seagull
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By analyzing existing cross correlation between Aluminum Corp of and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Aluminum Corp and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Guangzhou Seagull.
Diversification Opportunities for Aluminum Corp and Guangzhou Seagull
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Guangzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Aluminum Corp and Guangzhou Seagull
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Guangzhou Seagull. In addition to that, Aluminum Corp is 1.05 times more volatile than Guangzhou Seagull Kitchen. It trades about -0.21 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.1 per unit of volatility. If you would invest 312.00 in Guangzhou Seagull Kitchen on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Guangzhou Seagull Kitchen or generate 4.49% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Aluminum Corp |
| Guangzhou Seagull Kitchen |
Aluminum Corp and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Guangzhou Seagull
The main advantage of trading using opposite Aluminum Corp and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull'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 |
| Guangzhou Seagull vs. Suzhou Xingye Material | Guangzhou Seagull vs. Fujian Longzhou Transportation | Guangzhou Seagull vs. King Strong New Material | Guangzhou Seagull vs. Sinosteel Luonai Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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