Correlation Between Aluminum Corp and China Express
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By analyzing existing cross correlation between Aluminum Corp of and China Express Airlines, you can compare the effects of market volatilities on Aluminum Corp and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and China Express.
Diversification Opportunities for Aluminum Corp and China Express
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aluminum and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and China Express go up and down completely randomly.
Pair Corralation between Aluminum Corp and China Express
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the China Express. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.89 times less risky than China Express. The stock trades about -0.15 of its potential returns per unit of risk. The China Express Airlines is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 712.00 in China Express Airlines on November 28, 2024 and sell it today you would earn a total of 20.00 from holding China Express Airlines or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Aluminum Corp of vs. China Express Airlines
Performance |
| Timeline |
| Aluminum Corp |
| China Express Airlines |
Aluminum Corp and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and China Express
The main advantage of trading using opposite Aluminum Corp and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' 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 |
| China Express vs. Cultural Investment Holdings | China Express vs. Beijing Mainstreets Investment | China Express vs. Zoje Resources Investment | China Express vs. Zhejiang Construction 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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