Correlation Between Aluminum Corp and Xizi Clean
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By analyzing existing cross correlation between Aluminum Corp of and Xizi Clean Energy, you can compare the effects of market volatilities on Aluminum Corp and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Xizi Clean.
Diversification Opportunities for Aluminum Corp and Xizi Clean
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Xizi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Xizi Clean go up and down completely randomly.
Pair Corralation between Aluminum Corp and Xizi Clean
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.87 times more return on investment than Xizi Clean. However, Aluminum Corp of is 1.15 times less risky than Xizi Clean. It trades about 0.04 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.01 per unit of risk. If you would invest 587.00 in Aluminum Corp of on October 29, 2024 and sell it today you would earn a total of 200.00 from holding Aluminum Corp of or generate 34.07% 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. Xizi Clean Energy
Performance |
| Timeline |
| Aluminum Corp |
| Xizi Clean Energy |
Aluminum Corp and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Xizi Clean
The main advantage of trading using opposite Aluminum Corp and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean'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 |
| Xizi Clean vs. Hengli Industrial Development | Xizi Clean vs. Sichuan Yahua Industrial | Xizi Clean vs. Rising Nonferrous Metals | Xizi Clean vs. Gem Year Industrial Co |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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