Correlation Between Zhejiang JIULI and China Aluminum
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and China Aluminum International, you can compare the effects of market volatilities on Zhejiang JIULI and China 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 Zhejiang JIULI with a short position of China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and China Aluminum.
Diversification Opportunities for Zhejiang JIULI and China Aluminum
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter and Zhejiang JIULI 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 Zhejiang JIULI Hi tech are associated (or correlated) with China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and China Aluminum go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and China Aluminum
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.75 times more return on investment than China Aluminum. However, Zhejiang JIULI Hi tech is 1.34 times less risky than China Aluminum. It trades about 0.05 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.01 per unit of risk. If you would invest 1,991 in Zhejiang JIULI Hi tech on September 25, 2024 and sell it today you would earn a total of 379.00 from holding Zhejiang JIULI Hi tech or generate 19.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang JIULI Hi tech vs. China Aluminum International
Performance |
Timeline |
Zhejiang JIULI Hi |
China Aluminum Inter |
Zhejiang JIULI and China Aluminum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang JIULI and China Aluminum
The main advantage of trading using opposite Zhejiang JIULI and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, China 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 China Aluminum will offset losses from the drop in China Aluminum's long position.Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Shandong Gold Mining | Zhejiang JIULI vs. Rongsheng Petrochemical Co | Zhejiang JIULI vs. Inner Mongolia BaoTou |
China Aluminum vs. Jiangxi Hengda Hi Tech | China Aluminum vs. Jiangxi Naipu Mining | China Aluminum vs. Zijin Mining Group | China Aluminum vs. Zhejiang JIULI Hi tech |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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