Correlation Between Aluminumof China and Intelligent Bio

Can any of the company-specific risk be diversified away by investing in both Aluminumof China and Intelligent Bio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aluminumof China and Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aluminum of and Intelligent Bio Solutions, you can compare the effects of market volatilities on Aluminumof China and Intelligent Bio 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 Aluminumof China with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminumof China and Intelligent Bio.

Diversification Opportunities for Aluminumof China and Intelligent Bio

0.13

Correlation Coefficient

Aluminumof China  Intelligent Bio

Average diversification

The 3 months correlation between Aluminumof and Intelligent is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum of and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Aluminumof China 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 of are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Aluminumof China i.e., Aluminumof China and Intelligent Bio go up and down completely randomly.

Pair Corralation between Aluminumof China and Intelligent Bio

Assuming the 90 days horizon Aluminum of is expected to generate 0.66 times more return on investment than Intelligent Bio. However, Aluminum of is 1.52 times less risky than Intelligent Bio. It trades about 0.2 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.07 per unit of risk. If you would invest  60.00  in Aluminum of on May 21, 2025 and sell it today you would earn a total of  30.00  from holding Aluminum of or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Aluminum of  vs.  Intelligent Bio Solutions

Aluminumof China

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aluminum of are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Aluminumof China reported solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Bio Solutions

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aluminumof China and Intelligent Bio

The main advantage of trading using opposite Aluminumof China and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminumof China position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.

The idea behind Aluminum of and Intelligent Bio Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.