Correlation Between Aluminumof China and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Aluminumof China and MOVIE GAMES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aluminumof China and MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aluminum of and MOVIE GAMES SA, you can compare the effects of market volatilities on Aluminumof China and MOVIE GAMES 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 Aluminumof China with a short position of MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminumof China and MOVIE GAMES.
Diversification Opportunities for Aluminumof China and MOVIE GAMES
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aluminumof and MOVIE is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum of and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA and Aluminumof China 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 Aluminum of are associated (or correlated) with MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Aluminumof China i.e., Aluminumof China and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Aluminumof China and MOVIE GAMES
Assuming the 90 days horizon Aluminum of is expected to generate 0.9 times more return on investment than MOVIE GAMES. However, Aluminum of is 1.11 times less risky than MOVIE GAMES. It trades about 0.06 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about -0.01 per unit of risk. If you would invest 29.00 in Aluminum of on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Aluminum of or generate 93.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum of vs. MOVIE GAMES SA
Performance |
| Timeline |
| Aluminumof China |
| MOVIE GAMES SA |
Aluminumof China and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminumof China and MOVIE GAMES
The main advantage of trading using opposite Aluminumof China and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminumof China position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| Aluminumof China vs. TITANIUM TRANSPORTGROUP | Aluminumof China vs. TSOGO SUN GAMING | Aluminumof China vs. Media and Games | Aluminumof China vs. UNIVMUSIC GRPADR050 |
| MOVIE GAMES vs. LION ONE METALS | MOVIE GAMES vs. Silicon Motion Technology | MOVIE GAMES vs. Perseus Mining Limited | MOVIE GAMES vs. China BlueChemical |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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