Correlation Between Aluminum Corp and Lier Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and Lier Chemical Co, you can compare the effects of market volatilities on Aluminum Corp and Lier Chemical 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 Lier Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Lier Chemical.
Diversification Opportunities for Aluminum Corp and Lier Chemical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Lier is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Lier Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lier Chemical 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 Lier Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lier Chemical has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Lier Chemical go up and down completely randomly.
Pair Corralation between Aluminum Corp and Lier Chemical
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Lier Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.01 times less risky than Lier Chemical. The stock trades about -0.14 of its potential returns per unit of risk. The Lier Chemical Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 821.00 in Lier Chemical Co on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Lier Chemical Co or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Lier Chemical Co
Performance |
| Timeline |
| Aluminum Corp |
| Lier Chemical |
Aluminum Corp and Lier Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Lier Chemical
The main advantage of trading using opposite Aluminum Corp and Lier Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Lier Chemical 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 Lier Chemical will offset losses from the drop in Lier Chemical's long position.| Aluminum Corp vs. Hunan Investment Group | Aluminum Corp vs. Jiangsu Yueda Investment | Aluminum Corp vs. Kunwu Jiuding Investment | Aluminum Corp vs. Shenzhen Centralcon Investment |
| Lier Chemical vs. Peoples Insurance of | Lier Chemical vs. Shandong Hongchuang Aluminum | Lier Chemical vs. Qilu Bank Co | Lier Chemical vs. Aluminum Corp of |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |