Correlation Between Aluminum Corp and Guangdong Jinming
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Aluminum Corp and Guangdong Jinming 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 Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Guangdong Jinming.
Diversification Opportunities for Aluminum Corp and Guangdong Jinming
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Guangdong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming 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 Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Aluminum Corp and Guangdong Jinming
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 1.53 times less return on investment than Guangdong Jinming. But when comparing it to its historical volatility, Aluminum Corp of is 1.81 times less risky than Guangdong Jinming. It trades about 0.05 of its potential returns per unit of risk. Guangdong Jinming Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Guangdong Jinming Machinery on September 12, 2024 and sell it today you would earn a total of 155.00 from holding Guangdong Jinming Machinery or generate 29.25% 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. Guangdong Jinming Machinery
Performance |
| Timeline |
| Aluminum Corp |
| Guangdong Jinming |
Aluminum Corp and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Guangdong Jinming
The main advantage of trading using opposite Aluminum Corp and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co |
| Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Bank of China | Guangdong Jinming vs. PetroChina Co Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |