Correlation Between Aluminumof China and Hapag Lloyd
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By analyzing existing cross correlation between Aluminum of and Hapag Lloyd AG, you can compare the effects of market volatilities on Aluminumof China and Hapag Lloyd 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 Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminumof China and Hapag Lloyd.
Diversification Opportunities for Aluminumof China and Hapag Lloyd
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminumof and Hapag is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum of and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG 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 Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of Aluminumof China i.e., Aluminumof China and Hapag Lloyd go up and down completely randomly.
Pair Corralation between Aluminumof China and Hapag Lloyd
Assuming the 90 days horizon Aluminum of is expected to generate 1.0 times more return on investment than Hapag Lloyd. However, Aluminum of is 1.0 times less risky than Hapag Lloyd. It trades about 0.28 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about -0.28 per unit of risk. If you would invest 53.00 in Aluminum of on October 21, 2024 and sell it today you would earn a total of 8.00 from holding Aluminum of or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum of vs. Hapag Lloyd AG
Performance |
| Timeline |
| Aluminumof China |
| Hapag Lloyd AG |
Aluminumof China and Hapag Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminumof China and Hapag Lloyd
The main advantage of trading using opposite Aluminumof China and Hapag Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminumof China position performs unexpectedly, Hapag Lloyd 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 Hapag Lloyd will offset losses from the drop in Hapag Lloyd's long position.| Aluminumof China vs. GBS Software AG | Aluminumof China vs. AGNC INVESTMENT | Aluminumof China vs. Kingdee International Software | Aluminumof China vs. SLR Investment Corp |
| Hapag Lloyd vs. Take Two Interactive Software | Hapag Lloyd vs. Vishay Intertechnology | Hapag Lloyd vs. JIAHUA STORES | Hapag Lloyd vs. Costco Wholesale Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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