Correlation Between Tianshan Aluminum and Sunwave Communications
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By analyzing existing cross correlation between Tianshan Aluminum Group and Sunwave Communications Co, you can compare the effects of market volatilities on Tianshan Aluminum and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Sunwave Communications.
Diversification Opportunities for Tianshan Aluminum and Sunwave Communications
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshan and Sunwave is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Sunwave Communications go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Sunwave Communications
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Tianshan Aluminum Group is 1.75 times less risky than Sunwave Communications. The stock trades about -0.02 of its potential returns per unit of risk. The Sunwave Communications Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Sunwave Communications Co on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Sunwave Communications Co or generate 22.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Sunwave Communications Co
Performance |
| Timeline |
| Tianshan Aluminum |
| Sunwave Communications |
Tianshan Aluminum and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Sunwave Communications
The main advantage of trading using opposite Tianshan Aluminum and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Tianshan Aluminum vs. Lutian Machinery Co | Tianshan Aluminum vs. Changshu Tongrun Auto | Tianshan Aluminum vs. PetroChina Co Ltd | Tianshan Aluminum vs. Bank of China |
| Sunwave Communications vs. Kangxin New Materials | Sunwave Communications vs. Andon Health Co | Sunwave Communications vs. Dhc Software Co | Sunwave Communications vs. Impulse Qingdao Health |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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