Correlation Between Shenzhen Clou and Tianshan Aluminum
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Tianshan Aluminum Group, you can compare the effects of market volatilities on Shenzhen Clou 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 Shenzhen Clou with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Tianshan Aluminum.
Diversification Opportunities for Shenzhen Clou and Tianshan Aluminum
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Tianshan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Shenzhen Clou 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 Shenzhen Clou Electronics 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 Shenzhen Clou i.e., Shenzhen Clou and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Tianshan Aluminum
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.41 times more return on investment than Tianshan Aluminum. However, Shenzhen Clou is 1.41 times more volatile than Tianshan Aluminum Group. It trades about 0.09 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 per unit of risk. If you would invest 424.00 in Shenzhen Clou Electronics on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Shenzhen Clou Electronics or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Tianshan Aluminum |
Shenzhen Clou and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Tianshan Aluminum
The main advantage of trading using opposite Shenzhen Clou and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou 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.| Shenzhen Clou vs. Maxvision Technology Corp | Shenzhen Clou vs. Huaxia Fund Management | Shenzhen Clou vs. Guangzhou KingTeller Technology | Shenzhen Clou vs. 360 Security Technology |
| Tianshan Aluminum vs. BYD Co Ltd | Tianshan Aluminum vs. China Mobile Limited | Tianshan Aluminum vs. Agricultural Bank of | Tianshan Aluminum vs. Industrial and Commercial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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