Correlation Between Aluminum Corp and Gan Yuan
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By analyzing existing cross correlation between Aluminum Corp of and Gan Yuan Foods, you can compare the effects of market volatilities on Aluminum Corp and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Gan Yuan.
Diversification Opportunities for Aluminum Corp and Gan Yuan
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Gan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Gan Yuan go up and down completely randomly.
Pair Corralation between Aluminum Corp and Gan Yuan
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Gan Yuan. In addition to that, Aluminum Corp is 1.1 times more volatile than Gan Yuan Foods. It trades about -0.1 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.14 per unit of volatility. If you would invest 6,799 in Gan Yuan Foods on September 3, 2024 and sell it today you would earn a total of 1,059 from holding Gan Yuan Foods or generate 15.58% 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. Gan Yuan Foods
Performance |
| Timeline |
| Aluminum Corp |
| Gan Yuan Foods |
Aluminum Corp and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Gan Yuan
The main advantage of trading using opposite Aluminum Corp and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Aluminum Corp vs. ROPEOK Technology Group | Aluminum Corp vs. Kingsignal Technology Co | Aluminum Corp vs. Northking Information Technology | Aluminum Corp vs. Henan Shuanghui Investment |
| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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