Correlation Between Aluminum Corp and Shanghai National
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By analyzing existing cross correlation between Aluminum Corp of and Shanghai National Center, you can compare the effects of market volatilities on Aluminum Corp and Shanghai National 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 Shanghai National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shanghai National.
Diversification Opportunities for Aluminum Corp and Shanghai National
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminum and Shanghai is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shanghai National Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai National Center 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 Shanghai National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai National Center has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shanghai National go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shanghai National
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Shanghai National. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.53 times less risky than Shanghai National. The stock trades about -0.15 of its potential returns per unit of risk. The Shanghai National Center is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,539 in Shanghai National Center on November 28, 2024 and sell it today you would earn a total of 477.00 from holding Shanghai National Center or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Shanghai National Center
Performance |
| Timeline |
| Aluminum Corp |
| Shanghai National Center |
Aluminum Corp and Shanghai National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shanghai National
The main advantage of trading using opposite Aluminum Corp and Shanghai National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shanghai National 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 Shanghai National will offset losses from the drop in Shanghai National's 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 |
| Shanghai National vs. Yingde Greatchem Chemicals | Shanghai National vs. Shandong Polymer Biochemicals | Shanghai National vs. Miracll Chemicals Co | Shanghai National vs. Jinsanjiang Silicon Material |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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