Correlation Between China Vanke and Tianshan Aluminum
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By analyzing existing cross correlation between China Vanke Co and Tianshan Aluminum Group, you can compare the effects of market volatilities on China Vanke and Tianshan 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 China Vanke with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Tianshan Aluminum.
Diversification Opportunities for China Vanke and Tianshan Aluminum
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Tianshan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and China Vanke 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 Vanke Co are associated (or correlated) with Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of China Vanke i.e., China Vanke and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between China Vanke and Tianshan Aluminum
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Tianshan Aluminum. In addition to that, China Vanke is 1.04 times more volatile than Tianshan Aluminum Group. It trades about -0.07 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 per unit of volatility. If you would invest 829.00 in Tianshan Aluminum Group on October 15, 2024 and sell it today you would lose (9.00) from holding Tianshan Aluminum Group or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Tianshan Aluminum Group
Performance |
| Timeline |
| China Vanke |
| Tianshan Aluminum |
China Vanke and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Tianshan Aluminum
The main advantage of trading using opposite China Vanke and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Tianshan 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| China Vanke vs. Wuhan Yangtze Communication | China Vanke vs. Telling Telecommunication Holding | China Vanke vs. Zhongzhu Medical Holdings | China Vanke vs. Bohai Leasing Co |
| Tianshan Aluminum vs. Sportsoul Co Ltd | Tianshan Aluminum vs. Huaibei Mining Holdings | Tianshan Aluminum vs. Western Mining Co | Tianshan Aluminum vs. Shenyang Blue Silver |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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