Correlation Between HUHUTECH International and Century Aluminum

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Can any of the company-specific risk be diversified away by investing in both HUHUTECH International and Century Aluminum 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 HUHUTECH International and Century Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUHUTECH International Group and Century Aluminum, you can compare the effects of market volatilities on HUHUTECH International and Century 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 HUHUTECH International with a short position of Century Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUHUTECH International and Century Aluminum.

Diversification Opportunities for HUHUTECH International and Century Aluminum

HUHUTECHCenturyDiversified AwayHUHUTECHCenturyDiversified Away100%
-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between HUHUTECH and Century is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HUHUTECH International Group and Century Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Aluminum and HUHUTECH International 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 HUHUTECH International Group are associated (or correlated) with Century Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Aluminum has no effect on the direction of HUHUTECH International i.e., HUHUTECH International and Century Aluminum go up and down completely randomly.

Pair Corralation between HUHUTECH International and Century Aluminum

Given the investment horizon of 90 days HUHUTECH International is expected to generate 1.23 times less return on investment than Century Aluminum. In addition to that, HUHUTECH International is 1.41 times more volatile than Century Aluminum. It trades about 0.03 of its total potential returns per unit of risk. Century Aluminum is currently generating about 0.05 per unit of volatility. If you would invest  958.00  in Century Aluminum on November 27, 2024 and sell it today you would earn a total of  897.00  from holding Century Aluminum or generate 93.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy17.83%
ValuesDaily Returns

HUHUTECH International Group  vs.  Century Aluminum

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010
JavaScript chart by amCharts 3.21.15HUHU CENX
       Timeline  
HUHUTECH International 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HUHUTECH International Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical indicators, HUHUTECH International may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3456789
Century Aluminum 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Century Aluminum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb171819202122232425

HUHUTECH International and Century Aluminum Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-19.11-14.31-9.51-4.72-0.07994.669.4914.3119.1423.96 0.0100.0150.020
JavaScript chart by amCharts 3.21.15HUHU CENX
       Returns  

Pair Trading with HUHUTECH International and Century Aluminum

The main advantage of trading using opposite HUHUTECH International and Century Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUHUTECH International position performs unexpectedly, Century 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 Century Aluminum will offset losses from the drop in Century Aluminum's long position.
The idea behind HUHUTECH International Group and Century Aluminum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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