Correlation Between Aluminum Corp and Jinhui Mining
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By analyzing existing cross correlation between Aluminum Corp of and Jinhui Mining Co, you can compare the effects of market volatilities on Aluminum Corp and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Jinhui Mining.
Diversification Opportunities for Aluminum Corp and Jinhui Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Jinhui is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Jinhui Mining go up and down completely randomly.
Pair Corralation between Aluminum Corp and Jinhui Mining
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.3 times more return on investment than Jinhui Mining. However, Aluminum Corp is 1.3 times more volatile than Jinhui Mining Co. It trades about 0.08 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.01 per unit of risk. If you would invest 636.00 in Aluminum Corp of on November 3, 2024 and sell it today you would earn a total of 140.00 from holding Aluminum Corp of or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Jinhui Mining Co
Performance |
| Timeline |
| Aluminum Corp |
| Jinhui Mining |
Aluminum Corp and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Jinhui Mining
The main advantage of trading using opposite Aluminum Corp and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Aluminum Corp vs. GuoChuang Software Co | Aluminum Corp vs. Fujian Boss Software | Aluminum Corp vs. Aba Chemicals Corp | Aluminum Corp vs. Inspur Software Co |
| Jinhui Mining vs. Time Publishing and | Jinhui Mining vs. Zhejiang Publishing Media | Jinhui Mining vs. Heilongjiang Publishing Media | Jinhui Mining vs. Chengtun Mining Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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