Correlation Between Tianshan Aluminum and Xiandai Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianshan Aluminum Group and Xiandai Investment Co, you can compare the effects of market volatilities on Tianshan Aluminum and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Xiandai Investment.
Diversification Opportunities for Tianshan Aluminum and Xiandai Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianshan and Xiandai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Xiandai Investment go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Xiandai Investment
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.91 times more return on investment than Xiandai Investment. However, Tianshan Aluminum Group is 1.09 times less risky than Xiandai Investment. It trades about 0.03 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.02 per unit of risk. If you would invest 795.00 in Tianshan Aluminum Group on October 15, 2024 and sell it today you would earn a total of 25.00 from holding Tianshan Aluminum Group or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Xiandai Investment Co
Performance |
| Timeline |
| Tianshan Aluminum |
| Xiandai Investment |
Tianshan Aluminum and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Xiandai Investment
The main advantage of trading using opposite Tianshan Aluminum and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Tianshan Aluminum vs. Sportsoul Co Ltd | Tianshan Aluminum vs. Huaibei Mining Holdings | Tianshan Aluminum vs. Western Mining Co | Tianshan Aluminum vs. Shenyang Blue Silver |
| Xiandai Investment vs. Bingo Software Co | Xiandai Investment vs. China Publishing Media | Xiandai Investment vs. Shanghai Newtouch Software | Xiandai Investment vs. Guangzhou Jinyi Media |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |