Correlation Between China Aluminum and Dosilicon
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By analyzing existing cross correlation between China Aluminum International and Dosilicon Co, you can compare the effects of market volatilities on China Aluminum and Dosilicon 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 China Aluminum with a short position of Dosilicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Dosilicon.
Diversification Opportunities for China Aluminum and Dosilicon
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Dosilicon is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Dosilicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dosilicon and China Aluminum 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 China Aluminum International are associated (or correlated) with Dosilicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dosilicon has no effect on the direction of China Aluminum i.e., China Aluminum and Dosilicon go up and down completely randomly.
Pair Corralation between China Aluminum and Dosilicon
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Dosilicon. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 2.48 times less risky than Dosilicon. The stock trades about -0.01 of its potential returns per unit of risk. The Dosilicon Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,566 in Dosilicon Co on December 25, 2024 and sell it today you would earn a total of 479.00 from holding Dosilicon Co or generate 18.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Aluminum International vs. Dosilicon Co
Performance |
Timeline |
China Aluminum Inter |
Dosilicon |
China Aluminum and Dosilicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Aluminum and Dosilicon
The main advantage of trading using opposite China Aluminum and Dosilicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum position performs unexpectedly, Dosilicon 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 Dosilicon will offset losses from the drop in Dosilicon's long position.China Aluminum vs. Jiahe Foods Industry | China Aluminum vs. Xinjiang Tianrun Dairy | China Aluminum vs. Jiajia Food Group | China Aluminum vs. Chen Ke Ming |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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