Correlation Between Aluminum Corp and Shanghai Shuixing
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By analyzing existing cross correlation between Aluminum Corp of and Shanghai Shuixing Home, you can compare the effects of market volatilities on Aluminum Corp and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shanghai Shuixing.
Diversification Opportunities for Aluminum Corp and Shanghai Shuixing
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminum and Shanghai is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shanghai Shuixing
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Shanghai Shuixing. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.29 times less risky than Shanghai Shuixing. The stock trades about -0.06 of its potential returns per unit of risk. The Shanghai Shuixing Home is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,596 in Shanghai Shuixing Home on November 30, 2024 and sell it today you would lose (50.00) from holding Shanghai Shuixing Home or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Aluminum Corp |
| Shanghai Shuixing Home |
Aluminum Corp and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shanghai Shuixing
The main advantage of trading using opposite Aluminum Corp and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Aluminum Corp vs. Liaoning Dingjide Petrochemical | Aluminum Corp vs. Porton Fine Chemicals | Aluminum Corp vs. Cansino Biologics | Aluminum Corp vs. Pinlive Foods Co |
| Shanghai Shuixing vs. Anhui Transport Consulting | Shanghai Shuixing vs. Xinjiang Beixin RoadBridge | Shanghai Shuixing vs. Jinhui Liquor Co | Shanghai Shuixing vs. Silkroad Visual Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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