Correlation Between Ningbo Fujia and Aluminum Corp
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Aluminum Corp of, you can compare the effects of market volatilities on Ningbo Fujia 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 Fujia with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Aluminum Corp.
Diversification Opportunities for Ningbo Fujia and Aluminum Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Aluminum is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial 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 Fujia 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 Fujia Industrial 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 Fujia i.e., Ningbo Fujia and Aluminum Corp go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Aluminum Corp
Assuming the 90 days trading horizon Ningbo Fujia is expected to generate 1.99 times less return on investment than Aluminum Corp. In addition to that, Ningbo Fujia is 1.8 times more volatile than Aluminum Corp of. It trades about 0.06 of its total potential returns per unit of risk. Aluminum Corp of is currently generating about 0.22 per unit of volatility. If you would invest 720.00 in Aluminum Corp of on November 3, 2024 and sell it today you would earn a total of 56.00 from holding Aluminum Corp of or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Aluminum Corp of
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Aluminum Corp |
Ningbo Fujia and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Aluminum Corp
The main advantage of trading using opposite Ningbo Fujia and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia 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 Fujia vs. Western Metal Materials | Ningbo Fujia vs. Capitalonline Data Service | Ningbo Fujia vs. Tibet Huayu Mining | Ningbo Fujia vs. Bohai Leasing Co |
| Aluminum Corp vs. Hubeiyichang Transportation Group | Aluminum Corp vs. Chongqing Road Bridge | Aluminum Corp vs. Zhengzhou Coal Mining | Aluminum Corp vs. Huaibei Mining Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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