Correlation Between Tianshan Aluminum and Shenwu Energy
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By analyzing existing cross correlation between Tianshan Aluminum Group and Shenwu Energy Saving, you can compare the effects of market volatilities on Tianshan Aluminum and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Shenwu Energy.
Diversification Opportunities for Tianshan Aluminum and Shenwu Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Shenwu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Shenwu Energy go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Shenwu Energy
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.65 times more return on investment than Shenwu Energy. However, Tianshan Aluminum Group is 1.53 times less risky than Shenwu Energy. It trades about 0.01 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.0 per unit of risk. If you would invest 829.00 in Tianshan Aluminum Group on October 14, 2024 and sell it today you would lose (9.00) from holding Tianshan Aluminum Group or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Shenwu Energy Saving
Performance |
| Timeline |
| Tianshan Aluminum |
| Shenwu Energy Saving |
Tianshan Aluminum and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Shenwu Energy
The main advantage of trading using opposite Tianshan Aluminum and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Tianshan Aluminum vs. Jiajia Food Group | Tianshan Aluminum vs. Fujian Oriental Silver | Tianshan Aluminum vs. Shanghai Ziyan Foods | Tianshan Aluminum vs. Guilin Seamild Foods |
| Shenwu Energy vs. Shandong Homey Aquatic | Shenwu Energy vs. Tianshan Aluminum Group | Shenwu Energy vs. Rising Nonferrous Metals | Shenwu Energy vs. Zoy Home Furnishing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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