Correlation Between Aluminum Corp and Suzhou Weizhixiang
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By analyzing existing cross correlation between Aluminum Corp of and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Aluminum Corp and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Suzhou Weizhixiang.
Diversification Opportunities for Aluminum Corp and Suzhou Weizhixiang
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Suzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Aluminum Corp and Suzhou Weizhixiang
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Suzhou Weizhixiang. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.27 times less risky than Suzhou Weizhixiang. The stock trades about -0.21 of its potential returns per unit of risk. The Suzhou Weizhixiang Food is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,150 in Suzhou Weizhixiang Food on August 29, 2024 and sell it today you would earn a total of 153.00 from holding Suzhou Weizhixiang Food or generate 7.12% 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. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Aluminum Corp |
| Suzhou Weizhixiang Food |
Aluminum Corp and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Suzhou Weizhixiang
The main advantage of trading using opposite Aluminum Corp and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang'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 |
| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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