Correlation Between Aluminum Corp and Jiangsu Seagull
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By analyzing existing cross correlation between Aluminum Corp of and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Aluminum Corp and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Jiangsu Seagull.
Diversification Opportunities for Aluminum Corp and Jiangsu Seagull
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminum and Jiangsu is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Aluminum Corp and Jiangsu Seagull
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Jiangsu Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 2.05 times less risky than Jiangsu Seagull. The stock trades about -0.15 of its potential returns per unit of risk. The Jiangsu Seagull Cooling is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 845.00 in Jiangsu Seagull Cooling on October 14, 2024 and sell it today you would earn a total of 544.00 from holding Jiangsu Seagull Cooling or generate 64.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Aluminum Corp |
| Jiangsu Seagull Cooling |
Aluminum Corp and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Jiangsu Seagull
The main advantage of trading using opposite Aluminum Corp and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Aluminum Corp vs. Guosheng Financial Holding | Aluminum Corp vs. Panda Financial Holding | Aluminum Corp vs. China Everbright Bank | Aluminum Corp vs. Ningbo Tech Bank Co |
| Jiangsu Seagull vs. Suzhou Xingye Material | Jiangsu Seagull vs. Jinsanjiang Silicon Material | Jiangsu Seagull vs. UE Furniture Co | Jiangsu Seagull vs. China Building Material |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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