Correlation Between Aluminum Corp and Suzhou Novoprotein
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By analyzing existing cross correlation between Aluminum Corp of and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Aluminum Corp and Suzhou Novoprotein 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 Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Suzhou Novoprotein.
Diversification Opportunities for Aluminum Corp and Suzhou Novoprotein
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Suzhou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein 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 Novoprotein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Novoprotein has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Aluminum Corp and Suzhou Novoprotein
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 1.68 times more return on investment than Suzhou Novoprotein. However, Aluminum Corp is 1.68 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.26 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.2 per unit of risk. If you would invest 718.00 in Aluminum Corp of on November 5, 2024 and sell it today you would earn a total of 58.00 from holding Aluminum Corp of or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Aluminum Corp |
| Suzhou Novoprotein |
Aluminum Corp and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Suzhou Novoprotein
The main advantage of trading using opposite Aluminum Corp and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Suzhou Novoprotein 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 Novoprotein will offset losses from the drop in Suzhou Novoprotein's long position.| Aluminum Corp vs. SSAW Hotels Resorts | Aluminum Corp vs. Shuhua Sports Co | Aluminum Corp vs. China Sports Industry | Aluminum Corp vs. Zhejiang Yongjin Metal |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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