Correlation Between Aluminum Corp and Hunan Fangsheng
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By analyzing existing cross correlation between Aluminum Corp of and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Aluminum Corp and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Hunan Fangsheng.
Diversification Opportunities for Aluminum Corp and Hunan Fangsheng
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Hunan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Aluminum Corp and Hunan Fangsheng
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.16 times more return on investment than Hunan Fangsheng. However, Aluminum Corp is 1.16 times more volatile than Hunan Fangsheng Pharm. It trades about 0.13 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about 0.07 per unit of risk. If you would invest 631.00 in Aluminum Corp of on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Aluminum Corp of or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Aluminum Corp of vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Aluminum Corp |
| Hunan Fangsheng Pharm |
Aluminum Corp and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Hunan Fangsheng
The main advantage of trading using opposite Aluminum Corp and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng'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 |
| Hunan Fangsheng vs. Chinese Universe Publishing | Hunan Fangsheng vs. Ping An Insurance | Hunan Fangsheng vs. Suzhou Douson Drilling | Hunan Fangsheng vs. Jiangsu Phoenix Publishing |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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