Aluminum Futures Correlations

ALIUSD Commodity

2,562 5.50 0.22%

The current 90-days correlation between Aluminum Futures and 2 Year T Note Futures is -0.05 (i.e., Good diversification). The correlation of Aluminum Futures is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Aluminum Futures Correlation With Market

Good diversification

The correlation between Aluminum Futures and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Futures and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Aluminum Futures could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aluminum Futures when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aluminum Futures - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aluminum Futures to buy it.

Moving together with Aluminum Commodity

0.69	NVDA	NVIDIA	Pair Corr
0.77	META	Meta Platforms Aggressive Push	Pair Corr
0.73	LPCN	Lipocine	Pair Corr
0.67	LYV	Live Nation Entertainment	Pair Corr
0.65	PLUG	Plug Power Buyout Trend	Pair Corr
0.75	ZIM	ZIM Integrated Shipping Sell-off Trend	Pair Corr
0.69	PYPL	PayPal Holdings Aggressive Push	Pair Corr
0.67	TGRW	T Rowe Price	Pair Corr
0.63	MDIV	First Trust Multi	Pair Corr
0.75	BCD	abrdn Bloomberg All	Pair Corr
0.65	EOS	Eaton Vance Enhanced	Pair Corr
0.78	XHLF	Bondbloxx ETF Trust	Pair Corr
0.81	GLD	SPDR Gold Shares	Pair Corr
0.68	LIGYX	Loomis Sayles Intern	Pair Corr
0.66	ILESX	Fisher Investments	Pair Corr
0.69	VFINX	Vanguard 500 Index	Pair Corr
0.64	AMGOX	Alger Mid Cap	Pair Corr

Moving against Aluminum Commodity

0.37

MSTU

T REX 2X

Pair Corr

Related Correlations Analysis

	ZTUSD	CTUSX	ZRUSD	ZOUSX	DCUSD	SBUSX	HOUSD
ZTUSD		0.42	0.56	-0.03	0.85	-0.05	-0.44	ZTUSD
CTUSX	0.42		0.54	0.41	0.46	0.62	0.21	CTUSX
ZRUSD	0.56	0.54		-0.13	0.54	0.17	-0.15	ZRUSD
ZOUSX	-0.03	0.41	-0.13		0.17	0.58	0.45	ZOUSX
DCUSD	0.85	0.46	0.54	0.17		0.11	-0.26	DCUSD
SBUSX	-0.05	0.62	0.17	0.58	0.11		0.5	SBUSX
HOUSD	-0.44	0.21	-0.15	0.45	-0.26	0.5		HOUSD
	ZTUSD	CTUSX	ZRUSD	ZOUSX	DCUSD	SBUSX	HOUSD

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DCUSD	+ 0.85	ZTUSD
SBUSX	+ 0.62	CTUSX
SBUSX	+ 0.58	ZOUSX
ZRUSD	+ 0.56	ZTUSD
ZRUSD	+ 0.54	CTUSX
DCUSD	+ 0.54	ZRUSD

High negative correlations

HOUSD	- 0.44	ZTUSD
HOUSD	- 0.26	DCUSD
HOUSD	- 0.15	ZRUSD
ZOUSX	- 0.13	ZRUSD
SBUSX	- 0.05	ZTUSD
ZOUSX	- 0.03	ZTUSD

Risk-Adjusted Indicators

There is a big difference between Aluminum Commodity performing well and Aluminum Futures Commodity doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Aluminum Futures' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ZTUSD	0.09	(0.02)	0.00	(2.19)	0.00	0.00	0.18	(0.16)	0.90
CTUSX	0.96	0.00	(0.08)	0.12	1.05	(1.07)	2.41	(1.82)	6.64
ZRUSD	0.72	0.04	(0.09)	(0.52)	0.97	(0.76)	1.53	(1.86)	4.39
ZOUSX	1.71	0.11	(0.01)	(0.72)	2.57	(1.59)	2.70	(4.36)	10.34
DCUSD	0.98	(0.10)	0.00	(0.08)	0.00	0.00	0.95	(1.44)	21.45
SBUSX	1.39	0.12	0.00	1.98	1.35	(1.75)	3.33	(2.23)	9.50
HOUSD	1.44	0.01	0.00	0.12	0.00	0.00	3.07	(3.52)	9.93

Aluminum Futures Related Commodities

One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as Aluminum Futures, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.

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