Correlation Between Aluminum Corp and Tengda Construction
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By analyzing existing cross correlation between Aluminum Corp of and Tengda Construction Group, you can compare the effects of market volatilities on Aluminum Corp and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Tengda Construction.
Diversification Opportunities for Aluminum Corp and Tengda Construction
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aluminum and Tengda is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Tengda Construction go up and down completely randomly.
Pair Corralation between Aluminum Corp and Tengda Construction
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.05 times more return on investment than Tengda Construction. However, Aluminum Corp is 1.05 times more volatile than Tengda Construction Group. It trades about 0.17 of its potential returns per unit of risk. Tengda Construction Group is currently generating about -0.21 per unit of risk. If you would invest 721.00 in Aluminum Corp of on October 24, 2024 and sell it today you would earn a total of 46.00 from holding Aluminum Corp of or generate 6.38% 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. Tengda Construction Group
Performance |
| Timeline |
| Aluminum Corp |
| Tengda Construction |
Aluminum Corp and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Tengda Construction
The main advantage of trading using opposite Aluminum Corp and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Aluminum Corp vs. Hubei Xingfa Chemicals | Aluminum Corp vs. Hefei Metalforming Mach | Aluminum Corp vs. Porton Fine Chemicals | Aluminum Corp vs. Anhui Tongguan Copper |
| Tengda Construction vs. Jinling Hotel Corp | Tengda Construction vs. Huatian Hotel Group | Tengda Construction vs. Ingenic Semiconductor | Tengda Construction vs. Union Semiconductor 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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