Correlation Between Jizhong Energy and Tianshan Aluminum
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By analyzing existing cross correlation between Jizhong Energy Resources and Tianshan Aluminum Group, you can compare the effects of market volatilities on Jizhong Energy 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 Jizhong Energy with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jizhong Energy and Tianshan Aluminum.
Diversification Opportunities for Jizhong Energy and Tianshan Aluminum
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jizhong and Tianshan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jizhong Energy Resources and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Jizhong Energy 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 Jizhong Energy Resources 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 Jizhong Energy i.e., Jizhong Energy and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Jizhong Energy and Tianshan Aluminum
Assuming the 90 days trading horizon Jizhong Energy Resources is expected to generate 0.6 times more return on investment than Tianshan Aluminum. However, Jizhong Energy Resources is 1.67 times less risky than Tianshan Aluminum. It trades about 0.08 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about -0.02 per unit of risk. If you would invest 604.00 in Jizhong Energy Resources on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Jizhong Energy Resources or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jizhong Energy Resources vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Jizhong Energy Resources |
| Tianshan Aluminum |
Jizhong Energy and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jizhong Energy and Tianshan Aluminum
The main advantage of trading using opposite Jizhong Energy and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jizhong Energy 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.| Jizhong Energy vs. Zhejiang Kingland Pipeline | Jizhong Energy vs. Jiangsu Hoperun Software | Jizhong Energy vs. Chongqing Changan Automobile | Jizhong Energy vs. Qingdao Citymedia Co |
| Tianshan Aluminum vs. Lutian Machinery Co | Tianshan Aluminum vs. Changshu Tongrun Auto | Tianshan Aluminum vs. PetroChina Co Ltd | Tianshan Aluminum vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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