Correlation Between Aluminum Corp and Shanghai Newtouch
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By analyzing existing cross correlation between Aluminum Corp of and Shanghai Newtouch Software, you can compare the effects of market volatilities on Aluminum Corp and Shanghai Newtouch 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 Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Shanghai Newtouch.
Diversification Opportunities for Aluminum Corp and Shanghai Newtouch
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aluminum and Shanghai is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Aluminum Corp and Shanghai Newtouch
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 1.74 times less return on investment than Shanghai Newtouch. But when comparing it to its historical volatility, Aluminum Corp of is 1.94 times less risky than Shanghai Newtouch. It trades about 0.04 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,246 in Shanghai Newtouch Software on October 29, 2024 and sell it today you would earn a total of 605.00 from holding Shanghai Newtouch Software or generate 48.56% 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. Shanghai Newtouch Software
Performance |
| Timeline |
| Aluminum Corp |
| Shanghai Newtouch |
Aluminum Corp and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Shanghai Newtouch
The main advantage of trading using opposite Aluminum Corp and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Shanghai Newtouch 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 Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Shandong Gold Mining |
| Shanghai Newtouch vs. Cultural Investment Holdings | Shanghai Newtouch vs. Shengda Mining Co | Shanghai Newtouch vs. Jiangsu Yueda Investment | Shanghai Newtouch vs. Shanghai Yanpu Metal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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