Correlation Between Aluminumof China and SOEDER SPORTFISKE
Can any of the company-specific risk be diversified away by investing in both Aluminumof China and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aluminum of and SOEDER SPORTFISKE AB, you can compare the effects of market volatilities on Aluminumof China and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminumof China and SOEDER SPORTFISKE.
Diversification Opportunities for Aluminumof China and SOEDER SPORTFISKE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aluminumof and SOEDER is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum of and SOEDER SPORTFISKE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOEDER SPORTFISKE 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 SOEDER SPORTFISKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOEDER SPORTFISKE has no effect on the direction of Aluminumof China i.e., Aluminumof China and SOEDER SPORTFISKE go up and down completely randomly.
Pair Corralation between Aluminumof China and SOEDER SPORTFISKE
Assuming the 90 days horizon Aluminum of is expected to generate 1.85 times more return on investment than SOEDER SPORTFISKE. However, Aluminumof China is 1.85 times more volatile than SOEDER SPORTFISKE AB. It trades about 0.09 of its potential returns per unit of risk. SOEDER SPORTFISKE AB is currently generating about 0.01 per unit of risk. If you would invest 45.00 in Aluminum of on October 18, 2024 and sell it today you would earn a total of 12.00 from holding Aluminum of or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum of vs. SOEDER SPORTFISKE AB
Performance |
| Timeline |
| Aluminumof China |
| SOEDER SPORTFISKE |
Aluminumof China and SOEDER SPORTFISKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminumof China and SOEDER SPORTFISKE
The main advantage of trading using opposite Aluminumof China and SOEDER SPORTFISKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminumof China position performs unexpectedly, SOEDER SPORTFISKE 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 SOEDER SPORTFISKE will offset losses from the drop in SOEDER SPORTFISKE's long position.| Aluminumof China vs. Hyrican Informationssysteme Aktiengesellschaft | Aluminumof China vs. DATANG INTL POW | Aluminumof China vs. COSMOSTEEL HLDGS | Aluminumof China vs. DATA MODUL |
| SOEDER SPORTFISKE vs. United States Steel | SOEDER SPORTFISKE vs. Aluminum of | SOEDER SPORTFISKE vs. DONGJIANG ENVIRONMENTAL H | SOEDER SPORTFISKE vs. Fortescue Metals Group |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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