Correlation Between Senci Electric and Aluminum Corp
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By analyzing existing cross correlation between Senci Electric Machinery and Aluminum Corp of, you can compare the effects of market volatilities on Senci Electric 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 Senci Electric with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Aluminum Corp.
Diversification Opportunities for Senci Electric and Aluminum Corp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senci and Aluminum is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Senci Electric 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 Senci Electric Machinery 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 Senci Electric i.e., Senci Electric and Aluminum Corp go up and down completely randomly.
Pair Corralation between Senci Electric and Aluminum Corp
Assuming the 90 days trading horizon Senci Electric Machinery is expected to generate 1.23 times more return on investment than Aluminum Corp. However, Senci Electric is 1.23 times more volatile than Aluminum Corp of. It trades about 0.02 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.16 per unit of risk. If you would invest 1,625 in Senci Electric Machinery on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Senci Electric Machinery or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Aluminum Corp of
Performance |
| Timeline |
| Senci Electric Machinery |
| Aluminum Corp |
Senci Electric and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Aluminum Corp
The main advantage of trading using opposite Senci Electric and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric 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.| Senci Electric vs. Agricultural Bank of | Senci Electric vs. Industrial and Commercial | Senci Electric vs. Bank of China | Senci Electric vs. PetroChina Co Ltd |
| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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