Correlation Between Aluminum Corp and Long Yuan
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By analyzing existing cross correlation between Aluminum Corp of and Long Yuan Construction, you can compare the effects of market volatilities on Aluminum Corp and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Long Yuan.
Diversification Opportunities for Aluminum Corp and Long Yuan
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Long is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Long Yuan go up and down completely randomly.
Pair Corralation between Aluminum Corp and Long Yuan
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.65 times more return on investment than Long Yuan. However, Aluminum Corp of is 1.53 times less risky than Long Yuan. It trades about 0.22 of its potential returns per unit of risk. Long Yuan Construction is currently generating about 0.01 per unit of risk. If you would invest 720.00 in Aluminum Corp of on November 3, 2024 and sell it today you would earn a total of 56.00 from holding Aluminum Corp of or generate 7.78% 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. Long Yuan Construction
Performance |
| Timeline |
| Aluminum Corp |
| Long Yuan Construction |
Aluminum Corp and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Long Yuan
The main advantage of trading using opposite Aluminum Corp and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Aluminum Corp vs. Hubeiyichang Transportation Group | Aluminum Corp vs. Chongqing Road Bridge | Aluminum Corp vs. Zhengzhou Coal Mining | Aluminum Corp vs. Huaibei Mining Holdings |
| Long Yuan vs. Hefei Metalforming Mach | Long Yuan vs. Pengxin International Mining | Long Yuan vs. Guangdong Jingyi Metal | Long Yuan vs. Dymatic Chemicals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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