Correlation Between Aluminum Corp and Shenzhen Glory
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and Shenzhen Glory Medical, you can compare the effects of market volatilities on Aluminum Corp and Shenzhen Glory 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 Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shenzhen Glory.
Diversification Opportunities for Aluminum Corp and Shenzhen Glory
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aluminum and Shenzhen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shenzhen Glory
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 1.2 times less return on investment than Shenzhen Glory. But when comparing it to its historical volatility, Aluminum Corp of is 1.16 times less risky than Shenzhen Glory. It trades about 0.19 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 294.00 in Shenzhen Glory Medical on November 8, 2024 and sell it today you would earn a total of 22.00 from holding Shenzhen Glory Medical or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Aluminum Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenzhen Glory Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aluminum Corp and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shenzhen Glory
The main advantage of trading using opposite Aluminum Corp and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shenzhen Glory 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 Glory will offset losses from the drop in Shenzhen Glory's long position.The idea behind Aluminum Corp of and Shenzhen Glory Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |