Correlation Between Aluminum Corp and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Aluminum Corp and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Xinjiang Tianrun.
Diversification Opportunities for Aluminum Corp and Xinjiang Tianrun
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Xinjiang is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Aluminum Corp and Xinjiang Tianrun
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.13 times more return on investment than Xinjiang Tianrun. However, Aluminum Corp is 1.13 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.05 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 583.00 in Aluminum Corp of on September 12, 2024 and sell it today you would earn a total of 184.00 from holding Aluminum Corp of or generate 31.56% 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. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Aluminum Corp |
| Xinjiang Tianrun Dairy |
Aluminum Corp and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Xinjiang Tianrun
The main advantage of trading using opposite Aluminum Corp and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun'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 |
| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |