Correlation Between Aluminum Corp and Qinghaihuading Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Aluminum Corp and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Qinghaihuading Industrial.
Diversification Opportunities for Aluminum Corp and Qinghaihuading Industrial
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Qinghaihuading is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Aluminum Corp and Qinghaihuading Industrial
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Qinghaihuading Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 2.54 times less risky than Qinghaihuading Industrial. The stock trades about -0.27 of its potential returns per unit of risk. The Qinghaihuading Industrial Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 477.00 in Qinghaihuading Industrial Co on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Qinghaihuading Industrial Co or generate 22.01% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Aluminum Corp |
| Qinghaihuading Industrial |
Aluminum Corp and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Qinghaihuading Industrial
The main advantage of trading using opposite Aluminum Corp and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial'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 |
| Qinghaihuading Industrial vs. Agricultural Bank of | Qinghaihuading Industrial vs. Industrial and Commercial | Qinghaihuading Industrial vs. Bank of China | Qinghaihuading Industrial 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |