Correlation Between 00108WAF7 and ALIBABA
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and ALIBABA GROUP HLDG, you can compare the effects of market volatilities on 00108WAF7 and ALIBABA 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 00108WAF7 with a short position of ALIBABA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and ALIBABA.
Diversification Opportunities for 00108WAF7 and ALIBABA
Excellent diversification
The 3 months correlation between 00108WAF7 and ALIBABA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and ALIBABA GROUP HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBABA GROUP HLDG and 00108WAF7 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 AEP TEX INC are associated (or correlated) with ALIBABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBABA GROUP HLDG has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and ALIBABA go up and down completely randomly.
Pair Corralation between 00108WAF7 and ALIBABA
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 1.56 times more return on investment than ALIBABA. However, 00108WAF7 is 1.56 times more volatile than ALIBABA GROUP HLDG. It trades about 0.27 of its potential returns per unit of risk. ALIBABA GROUP HLDG is currently generating about -0.19 per unit of risk. If you would invest 7,097 in AEP TEX INC on November 9, 2024 and sell it today you would earn a total of 301.00 from holding AEP TEX INC or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEP TEX INC vs. ALIBABA GROUP HLDG
Performance |
| Timeline |
| AEP TEX INC |
| ALIBABA GROUP HLDG |
00108WAF7 and ALIBABA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and ALIBABA
The main advantage of trading using opposite 00108WAF7 and ALIBABA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, ALIBABA 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 ALIBABA will offset losses from the drop in ALIBABA's long position.| 00108WAF7 vs. BioNTech SE | 00108WAF7 vs. Molecular Partners AG | 00108WAF7 vs. Nuvalent | 00108WAF7 vs. Regeneron Pharmaceuticals |
| ALIBABA vs. MGIC Investment Corp | ALIBABA vs. Canaf Investments | ALIBABA vs. Toro Co | ALIBABA vs. Delaware Investments Florida |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |