Correlation Between Shanghai Newtouch and Aluminum Corp
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By analyzing existing cross correlation between Shanghai Newtouch Software and Aluminum Corp of, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Aluminum Corp.
Diversification Opportunities for Shanghai Newtouch and Aluminum Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Aluminum is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp and Shanghai Newtouch 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 Shanghai Newtouch Software 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 Shanghai Newtouch i.e., Shanghai Newtouch and Aluminum Corp go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Aluminum Corp
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to under-perform the Aluminum Corp. In addition to that, Shanghai Newtouch is 1.83 times more volatile than Aluminum Corp of. It trades about -0.02 of its total potential returns per unit of risk. Aluminum Corp of is currently generating about 0.07 per unit of volatility. If you would invest 516.00 in Aluminum Corp of on October 16, 2024 and sell it today you would earn a total of 227.00 from holding Aluminum Corp of or generate 43.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Aluminum Corp of
Performance |
| Timeline |
| Shanghai Newtouch |
| Aluminum Corp |
Shanghai Newtouch and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Aluminum Corp
The main advantage of trading using opposite Shanghai Newtouch and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. China World Trade | Shanghai Newtouch vs. Anyang Iron Steel | Shanghai Newtouch vs. Grandblue Environment Co | Shanghai Newtouch vs. Zhengzhou Qianweiyangchu Food |
| Aluminum Corp vs. Anhui Transport Consulting | Aluminum Corp vs. Xiwang Foodstuffs Co | Aluminum Corp vs. Jiangsu Broadcasting Cable | Aluminum Corp vs. Jiahe Foods Industry |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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