Correlation Between Aluminum Corp and Xingguang Agricultural
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By analyzing existing cross correlation between Aluminum Corp of and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Aluminum Corp and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Xingguang Agricultural.
Diversification Opportunities for Aluminum Corp and Xingguang Agricultural
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aluminum and Xingguang is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Aluminum Corp i.e., Aluminum Corp and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Aluminum Corp and Xingguang Agricultural
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.65 times more return on investment than Xingguang Agricultural. However, Aluminum Corp of is 1.53 times less risky than Xingguang Agricultural. It trades about 0.05 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.01 per unit of risk. If you would invest 564.00 in Aluminum Corp of on September 24, 2024 and sell it today you would earn a total of 164.00 from holding Aluminum Corp of or generate 29.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aluminum Corp of vs. Xingguang Agricultural Mach
Performance |
Timeline |
Aluminum Corp |
Xingguang Agricultural |
Aluminum Corp and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aluminum Corp and Xingguang Agricultural
The main advantage of trading using opposite Aluminum Corp and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.Aluminum Corp vs. Zoje Resources Investment | Aluminum Corp vs. Sanan Optoelectronics Co | Aluminum Corp vs. Zhongrun Resources Investment | Aluminum Corp vs. Shijiazhuang Tonhe Electronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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