Correlation Between Aluminum Corp and Sichuan Teway
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By analyzing existing cross correlation between Aluminum Corp of and Sichuan Teway Food, you can compare the effects of market volatilities on Aluminum Corp and Sichuan Teway 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 Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Sichuan Teway.
Diversification Opportunities for Aluminum Corp and Sichuan Teway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Sichuan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway Food 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 Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Sichuan Teway go up and down completely randomly.
Pair Corralation between Aluminum Corp and Sichuan Teway
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.02 times more return on investment than Sichuan Teway. However, Aluminum Corp is 1.02 times more volatile than Sichuan Teway Food. It trades about 0.04 of its potential returns per unit of risk. Sichuan Teway Food is currently generating about 0.02 per unit of risk. If you would invest 627.00 in Aluminum Corp of on September 4, 2024 and sell it today you would earn a total of 132.00 from holding Aluminum Corp of or generate 21.05% 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. Sichuan Teway Food
Performance |
| Timeline |
| Aluminum Corp |
| Sichuan Teway Food |
Aluminum Corp and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Sichuan Teway
The main advantage of trading using opposite Aluminum Corp and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway'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 |
| Sichuan Teway vs. Poly Real Estate | Sichuan Teway vs. China Vanke Co | Sichuan Teway vs. China Merchants Shekou | Sichuan Teway vs. Huafa Industrial Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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