Correlation Between Zhejiang Yongjin and China Aluminum
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and China Aluminum International, you can compare the effects of market volatilities on Zhejiang Yongjin and China Aluminum 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 Zhejiang Yongjin with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and China Aluminum.
Diversification Opportunities for Zhejiang Yongjin and China Aluminum
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter and Zhejiang Yongjin 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 Zhejiang Yongjin Metal are associated (or correlated) with China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and China Aluminum go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and China Aluminum
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the China Aluminum. In addition to that, Zhejiang Yongjin is 1.1 times more volatile than China Aluminum International. It trades about -0.16 of its total potential returns per unit of risk. China Aluminum International is currently generating about -0.11 per unit of volatility. If you would invest 498.00 in China Aluminum International on August 27, 2024 and sell it today you would lose (21.00) from holding China Aluminum International or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. China Aluminum International
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| China Aluminum Inter |
Zhejiang Yongjin and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and China Aluminum
The main advantage of trading using opposite Zhejiang Yongjin and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum's long position.| Zhejiang Yongjin vs. Sinosteel Engineering and | Zhejiang Yongjin vs. SUNSEA Telecommunications Co | Zhejiang Yongjin vs. Shenzhen MYS Environmental | Zhejiang Yongjin vs. Jilin Jlu Communication |
| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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