Correlation Between Haima Automobile and Tianshan Aluminum
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By analyzing existing cross correlation between Haima Automobile Group and Tianshan Aluminum Group, you can compare the effects of market volatilities on Haima Automobile 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 Haima Automobile with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Tianshan Aluminum.
Diversification Opportunities for Haima Automobile and Tianshan Aluminum
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Tianshan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Haima Automobile 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 Haima Automobile Group 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 Haima Automobile i.e., Haima Automobile and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Haima Automobile and Tianshan Aluminum
Assuming the 90 days trading horizon Haima Automobile is expected to generate 3.26 times less return on investment than Tianshan Aluminum. In addition to that, Haima Automobile is 1.53 times more volatile than Tianshan Aluminum Group. It trades about 0.0 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.02 per unit of volatility. If you would invest 829.00 in Tianshan Aluminum Group on October 18, 2024 and sell it today you would earn a total of 42.00 from holding Tianshan Aluminum Group or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Haima Automobile Group vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Haima Automobile |
| Tianshan Aluminum |
Haima Automobile and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Tianshan Aluminum
The main advantage of trading using opposite Haima Automobile and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile 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.| Haima Automobile vs. Duzhe Publishing Media | Haima Automobile vs. China Building Material | Haima Automobile vs. Orinko Advanced Plastics | Haima Automobile vs. Shanghai Action Education |
| Tianshan Aluminum vs. Western Metal Materials | Tianshan Aluminum vs. Haima Automobile Group | Tianshan Aluminum vs. Xiangyang Automobile Bearing | Tianshan Aluminum vs. China Mobile Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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