Correlation Between Tianshan Aluminum and Invengo Information
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By analyzing existing cross correlation between Tianshan Aluminum Group and Invengo Information Technology, you can compare the effects of market volatilities on Tianshan Aluminum and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Invengo Information.
Diversification Opportunities for Tianshan Aluminum and Invengo Information
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Invengo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Invengo Information go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Invengo Information
Assuming the 90 days trading horizon Tianshan Aluminum is expected to generate 1.91 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Tianshan Aluminum Group is 1.43 times less risky than Invengo Information. It trades about 0.13 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 404.00 in Invengo Information Technology on September 2, 2024 and sell it today you would earn a total of 196.00 from holding Invengo Information Technology or generate 48.51% 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. Invengo Information Technology
Performance |
| Timeline |
| Tianshan Aluminum |
| Invengo Information |
Tianshan Aluminum and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Invengo Information
The main advantage of trading using opposite Tianshan Aluminum and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Tianshan Aluminum vs. BYD Co Ltd | Tianshan Aluminum vs. China Mobile Limited | Tianshan Aluminum vs. Agricultural Bank of | Tianshan Aluminum vs. Industrial and Commercial |
| Invengo Information vs. Cultural Investment Holdings | Invengo Information vs. Gome Telecom Equipment | Invengo Information vs. Bus Online Co | Invengo Information vs. Zotye Automobile Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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