Correlation Between Aluminum Corp and Xiandai Investment
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By analyzing existing cross correlation between Aluminum Corp of and Xiandai Investment Co, you can compare the effects of market volatilities on Aluminum Corp and Xiandai Investment 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 Aluminum Corp with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Xiandai Investment.
Diversification Opportunities for Aluminum Corp and Xiandai Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aluminum and Xiandai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Aluminum Corp 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 Corp of are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Xiandai Investment go up and down completely randomly.
Pair Corralation between Aluminum Corp and Xiandai Investment
Assuming the 90 days trading horizon Aluminum Corp is expected to generate 1.49 times less return on investment than Xiandai Investment. In addition to that, Aluminum Corp is 1.24 times more volatile than Xiandai Investment Co. It trades about 0.12 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.23 per unit of volatility. If you would invest 340.00 in Xiandai Investment Co on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Xiandai Investment Co or generate 37.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aluminum Corp of vs. Xiandai Investment Co
Performance |
Timeline |
Aluminum Corp |
Xiandai Investment |
Aluminum Corp and Xiandai Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aluminum Corp and Xiandai Investment
The main advantage of trading using opposite Aluminum Corp and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp vs. Rongsheng Petrochemical Co |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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