Correlation Between Aluminum Corp and Senci Electric
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By analyzing existing cross correlation between Aluminum Corp of and Senci Electric Machinery, you can compare the effects of market volatilities on Aluminum Corp and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Senci Electric.
Diversification Opportunities for Aluminum Corp and Senci Electric
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Senci is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Senci Electric go up and down completely randomly.
Pair Corralation between Aluminum Corp and Senci Electric
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Senci Electric. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.23 times less risky than Senci Electric. The stock trades about -0.16 of its potential returns per unit of risk. The Senci Electric Machinery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,625 in Senci Electric Machinery on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Senci Electric Machinery or generate 0.55% 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. Senci Electric Machinery
Performance |
| Timeline |
| Aluminum Corp |
| Senci Electric Machinery |
Aluminum Corp and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Senci Electric
The main advantage of trading using opposite Aluminum Corp and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric'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 |
| Senci Electric vs. Agricultural Bank of | Senci Electric vs. Industrial and Commercial | Senci Electric vs. Bank of China | Senci Electric vs. PetroChina Co Ltd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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