Correlation Between Aluminum Corp and Ye Chiu
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By analyzing existing cross correlation between Aluminum Corp of and Ye Chiu Metal, you can compare the effects of market volatilities on Aluminum Corp and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Ye Chiu.
Diversification Opportunities for Aluminum Corp and Ye Chiu
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aluminum and 601388 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Ye Chiu go up and down completely randomly.
Pair Corralation between Aluminum Corp and Ye Chiu
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.22 times more return on investment than Ye Chiu. However, Aluminum Corp is 1.22 times more volatile than Ye Chiu Metal. It trades about 0.22 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.13 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Ye Chiu Metal
Performance |
| Timeline |
| Aluminum Corp |
| Ye Chiu Metal |
Aluminum Corp and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Ye Chiu
The main advantage of trading using opposite Aluminum Corp and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu'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 |
| Ye Chiu vs. Keda Clean Energy | Ye Chiu vs. Citic Guoan Wine | Ye Chiu vs. Tsingtao Brewery Co | Ye Chiu vs. Tonghua Grape Wine |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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