Correlation Between Tianshan Aluminum and Vanfund Urban
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By analyzing existing cross correlation between Tianshan Aluminum Group and Vanfund Urban Investment, you can compare the effects of market volatilities on Tianshan Aluminum and Vanfund Urban 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 Tianshan Aluminum with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Vanfund Urban.
Diversification Opportunities for Tianshan Aluminum and Vanfund Urban
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Vanfund is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Tianshan Aluminum 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 Tianshan Aluminum Group are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Vanfund Urban go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Vanfund Urban
Assuming the 90 days trading horizon Tianshan Aluminum is expected to generate 11.26 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, Tianshan Aluminum Group is 1.2 times less risky than Vanfund Urban. It trades about 0.01 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Vanfund Urban Investment on September 27, 2024 and sell it today you would earn a total of 126.00 from holding Vanfund Urban Investment or generate 36.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Vanfund Urban Investment
Performance |
| Timeline |
| Tianshan Aluminum |
| Vanfund Urban Investment |
Tianshan Aluminum and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Vanfund Urban
The main advantage of trading using opposite Tianshan Aluminum and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. Poly Real Estate | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou |
| Vanfund Urban vs. Chengdu Xingrong Investment | Vanfund Urban vs. Jointo Energy Investment | Vanfund Urban vs. Oppein Home Group | Vanfund Urban vs. Hunan Mendale Hometextile |
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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