Correlation Between Aluminum Corp and Jiangsu GDK
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By analyzing existing cross correlation between Aluminum Corp of and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Aluminum Corp and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Jiangsu GDK.
Diversification Opportunities for Aluminum Corp and Jiangsu GDK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Jiangsu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Aluminum Corp and Jiangsu GDK
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 2.02 times less risky than Jiangsu GDK. The stock trades about -0.1 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Jiangsu GDK Biotechnology on September 4, 2024 and sell it today you would earn a total of 300.00 from holding Jiangsu GDK Biotechnology or generate 22.76% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Aluminum Corp |
| Jiangsu GDK Biotechnology |
Aluminum Corp and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Jiangsu GDK
The main advantage of trading using opposite Aluminum Corp and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK'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 |
| Jiangsu GDK vs. Sinofibers Technology Co | Jiangsu GDK vs. Niutech Environment Technology | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Kuangda Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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