Correlation Between Aluminum Corp and Citic Guoan
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By analyzing existing cross correlation between Aluminum Corp of and Citic Guoan Wine, you can compare the effects of market volatilities on Aluminum Corp and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Citic Guoan.
Diversification Opportunities for Aluminum Corp and Citic Guoan
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Citic is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Citic Guoan go up and down completely randomly.
Pair Corralation between Aluminum Corp and Citic Guoan
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.91 times more return on investment than Citic Guoan. However, Aluminum Corp of is 1.1 times less risky than Citic Guoan. It trades about 0.14 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.13 per unit of risk. If you would invest 748.00 in Aluminum Corp of on October 29, 2024 and sell it today you would earn a total of 39.00 from holding Aluminum Corp of or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Citic Guoan Wine
Performance |
| Timeline |
| Aluminum Corp |
| Citic Guoan Wine |
Aluminum Corp and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Citic Guoan
The main advantage of trading using opposite Aluminum Corp and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan'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 |
| Citic Guoan vs. Offshore Oil Engineering | Citic Guoan vs. Beijing Kingsoft Office | Citic Guoan vs. Jiangsu Phoenix Publishing | Citic Guoan vs. MayAir Technology Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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