Correlation Between Aluminum Corp and Bank of XiAn
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By analyzing existing cross correlation between Aluminum Corp of and Bank of XiAn, you can compare the effects of market volatilities on Aluminum Corp and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Bank of XiAn.
Diversification Opportunities for Aluminum Corp and Bank of XiAn
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aluminum and Bank is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Bank of XiAn go up and down completely randomly.
Pair Corralation between Aluminum Corp and Bank of XiAn
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.54 times more return on investment than Bank of XiAn. However, Aluminum Corp is 1.54 times more volatile than Bank of XiAn. It trades about 0.05 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.02 per unit of risk. If you would invest 551.00 in Aluminum Corp of on September 12, 2024 and sell it today you would earn a total of 216.00 from holding Aluminum Corp of or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Aluminum Corp of vs. Bank of XiAn
Performance |
| Timeline |
| Aluminum Corp |
| Bank of XiAn |
Aluminum Corp and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Bank of XiAn
The main advantage of trading using opposite Aluminum Corp and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn'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 |
| Bank of XiAn vs. Hang Xiao Steel | Bank of XiAn vs. Heilongjiang Transport Development | Bank of XiAn vs. Sino Platinum Metals Co | Bank of XiAn vs. Jiaozuo Wanfang Aluminum |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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