Correlation Between Aluminum Corp and Lushang Property
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By analyzing existing cross correlation between Aluminum Corp of and Lushang Property Co, you can compare the effects of market volatilities on Aluminum Corp and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Lushang Property.
Diversification Opportunities for Aluminum Corp and Lushang Property
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminum and Lushang is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Lushang Property go up and down completely randomly.
Pair Corralation between Aluminum Corp and Lushang Property
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.87 times more return on investment than Lushang Property. However, Aluminum Corp of is 1.14 times less risky than Lushang Property. It trades about 0.26 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.1 per unit of risk. If you would invest 718.00 in Aluminum Corp of on November 5, 2024 and sell it today you would earn a total of 58.00 from holding Aluminum Corp of or generate 8.08% 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. Lushang Property Co
Performance |
| Timeline |
| Aluminum Corp |
| Lushang Property |
Aluminum Corp and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Lushang Property
The main advantage of trading using opposite Aluminum Corp and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Aluminum Corp vs. SSAW Hotels Resorts | Aluminum Corp vs. Shuhua Sports Co | Aluminum Corp vs. China Sports Industry | Aluminum Corp vs. Zhejiang Yongjin Metal |
| Lushang Property vs. New Hope Dairy | Lushang Property vs. Quectel Wireless Solutions | Lushang Property vs. Guilin Seamild Foods | Lushang Property vs. Yan Tai Shuang |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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