Correlation Between Tianshan Aluminum and Guangzhou KingTeller
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By analyzing existing cross correlation between Tianshan Aluminum Group and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Tianshan Aluminum and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Guangzhou KingTeller.
Diversification Opportunities for Tianshan Aluminum and Guangzhou KingTeller
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianshan and Guangzhou is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Guangzhou KingTeller
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.31 times more return on investment than Guangzhou KingTeller. However, Tianshan Aluminum Group is 3.27 times less risky than Guangzhou KingTeller. It trades about -0.07 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.29 per unit of risk. If you would invest 820.00 in Tianshan Aluminum Group on October 11, 2024 and sell it today you would lose (20.00) from holding Tianshan Aluminum Group or give up 2.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianshan Aluminum Group vs. Guangzhou KingTeller Technolog
Performance |
Timeline |
Tianshan Aluminum |
Guangzhou KingTeller |
Tianshan Aluminum and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianshan Aluminum and Guangzhou KingTeller
The main advantage of trading using opposite Tianshan Aluminum and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.Tianshan Aluminum vs. Guangzhou Ruoyuchen Information | Tianshan Aluminum vs. Bus Online Co | Tianshan Aluminum vs. Gan Yuan Foods | Tianshan Aluminum vs. Spring Airlines Co |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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