Correlation Between Aluminum Corp and Shandong Sanyuan
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By analyzing existing cross correlation between Aluminum Corp of and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Aluminum Corp and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shandong Sanyuan.
Diversification Opportunities for Aluminum Corp and Shandong Sanyuan
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Shandong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shandong Sanyuan
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Shandong Sanyuan. In addition to that, Aluminum Corp is 1.4 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.21 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.12 per unit of volatility. If you would invest 2,861 in Shandong Sanyuan Biotechnology on August 29, 2024 and sell it today you would lose (149.00) from holding Shandong Sanyuan Biotechnology or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Aluminum Corp |
| Shandong Sanyuan Bio |
Aluminum Corp and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shandong Sanyuan
The main advantage of trading using opposite Aluminum Corp and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
| Shandong Sanyuan vs. Wuhan Yangtze Communication | Shandong Sanyuan vs. Runjian Communication Co | Shandong Sanyuan vs. SUNSEA Telecommunications Co | Shandong Sanyuan vs. Gome Telecom Equipment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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