Correlation Between Ningbo Construction and Aluminum Corp
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By analyzing existing cross correlation between Ningbo Construction Co and Aluminum Corp of, you can compare the effects of market volatilities on Ningbo Construction and Aluminum Corp 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 Ningbo Construction with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Aluminum Corp.
Diversification Opportunities for Ningbo Construction and Aluminum Corp
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Aluminum is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Ningbo Construction 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 Ningbo Construction Co are associated (or correlated) with Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Aluminum Corp go up and down completely randomly.
Pair Corralation between Ningbo Construction and Aluminum Corp
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.03 times more return on investment than Aluminum Corp. However, Ningbo Construction is 1.03 times more volatile than Aluminum Corp of. It trades about 0.09 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.02 per unit of risk. If you would invest 382.00 in Ningbo Construction Co on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Ningbo Construction Co or generate 29.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Aluminum Corp of
Performance |
| Timeline |
| Ningbo Construction |
| Aluminum Corp |
Ningbo Construction and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Aluminum Corp
The main advantage of trading using opposite Ningbo Construction and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Ningbo Construction vs. Agricultural Bank of | Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. Bank of China | Ningbo Construction vs. PetroChina Co Ltd |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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