Correlation Between Xiangyang Automobile and Tianshan Aluminum
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Tianshan Aluminum Group, you can compare the effects of market volatilities on Xiangyang 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 Xiangyang Automobile with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Tianshan Aluminum.
Diversification Opportunities for Xiangyang Automobile and Tianshan Aluminum
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiangyang and Tianshan is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Xiangyang 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Tianshan Aluminum
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.66 times more return on investment than Tianshan Aluminum. However, Xiangyang Automobile is 1.66 times more volatile than Tianshan Aluminum Group. It trades about 0.13 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.07 per unit of risk. If you would invest 360.00 in Xiangyang Automobile Bearing on October 18, 2024 and sell it today you would earn a total of 269.00 from holding Xiangyang Automobile Bearing or generate 74.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Xiangyang Automobile |
| Tianshan Aluminum |
Xiangyang Automobile and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Tianshan Aluminum
The main advantage of trading using opposite Xiangyang Automobile and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang 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.| Xiangyang Automobile vs. Jiamei Food Packaging | Xiangyang Automobile vs. Qtone Education Group | Xiangyang Automobile vs. Anji Foodstuff Co | Xiangyang Automobile vs. Jiajia Food Group |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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