Correlation Between Aluminum Corp and Liaoning Chengda
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By analyzing existing cross correlation between Aluminum Corp of and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Aluminum Corp and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Liaoning Chengda.
Diversification Opportunities for Aluminum Corp and Liaoning Chengda
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and Liaoning is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Aluminum Corp and Liaoning Chengda
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 5.62 times less return on investment than Liaoning Chengda. In addition to that, Aluminum Corp is 1.25 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.03 per unit of volatility. If you would invest 2,580 in Liaoning Chengda Biotechnology on September 3, 2024 and sell it today you would earn a total of 152.00 from holding Liaoning Chengda Biotechnology or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Aluminum Corp |
| Liaoning Chengda Bio |
Aluminum Corp and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Liaoning Chengda
The main advantage of trading using opposite Aluminum Corp and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Aluminum Corp vs. ROPEOK Technology Group | Aluminum Corp vs. Kingsignal Technology Co | Aluminum Corp vs. Northking Information Technology | Aluminum Corp vs. Henan Shuanghui Investment |
| Liaoning Chengda vs. Chengdu Kanghua Biological | Liaoning Chengda vs. Beijing Wantai Biological | Liaoning Chengda vs. Suzhou Novoprotein Scientific | Liaoning Chengda vs. Aluminum Corp of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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