Correlation Between Aluminum Corp and Xingguang Agricultural
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By analyzing existing cross correlation between Aluminum Corp of and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Aluminum Corp and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Xingguang Agricultural.
Diversification Opportunities for Aluminum Corp and Xingguang Agricultural
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aluminum and Xingguang is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Aluminum Corp and Xingguang Agricultural
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Xingguang Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.32 times less risky than Xingguang Agricultural. The stock trades about -0.01 of its potential returns per unit of risk. The Xingguang Agricultural Mach is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 653.00 in Xingguang Agricultural Mach on September 27, 2024 and sell it today you would earn a total of 158.00 from holding Xingguang Agricultural Mach or generate 24.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Aluminum Corp |
| Xingguang Agricultural |
Aluminum Corp and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Xingguang Agricultural
The main advantage of trading using opposite Aluminum Corp and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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