Correlation Between Aluminum Corp and Guangdong Marubi
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By analyzing existing cross correlation between Aluminum Corp of and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Aluminum Corp and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Guangdong Marubi.
Diversification Opportunities for Aluminum Corp and Guangdong Marubi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Aluminum Corp and Guangdong Marubi
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 1.15 times less return on investment than Guangdong Marubi. But when comparing it to its historical volatility, Aluminum Corp of is 1.07 times less risky than Guangdong Marubi. It trades about 0.04 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,483 in Guangdong Marubi Biotechnology on September 4, 2024 and sell it today you would earn a total of 617.00 from holding Guangdong Marubi Biotechnology or generate 24.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Aluminum Corp |
| Guangdong Marubi Bio |
Aluminum Corp and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Guangdong Marubi
The main advantage of trading using opposite Aluminum Corp and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi'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 |
| Guangdong Marubi vs. Jiujiang Shanshui Technology | Guangdong Marubi vs. Guangzhou Seagull Kitchen | Guangdong Marubi vs. Citic Guoan Wine | Guangdong Marubi vs. Vontron Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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