Correlation Between Tianshan Aluminum and Anhui Fuhuang
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By analyzing existing cross correlation between Tianshan Aluminum Group and Anhui Fuhuang Steel, you can compare the effects of market volatilities on Tianshan Aluminum and Anhui Fuhuang 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 Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Anhui Fuhuang.
Diversification Opportunities for Tianshan Aluminum and Anhui Fuhuang
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianshan and Anhui is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel 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 Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Anhui Fuhuang
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.44 times more return on investment than Anhui Fuhuang. However, Tianshan Aluminum Group is 2.27 times less risky than Anhui Fuhuang. It trades about 0.32 of its potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about -0.19 per unit of risk. If you would invest 806.00 in Tianshan Aluminum Group on October 29, 2024 and sell it today you would earn a total of 99.00 from holding Tianshan Aluminum Group or generate 12.28% 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. Anhui Fuhuang Steel
Performance |
| Timeline |
| Tianshan Aluminum |
| Anhui Fuhuang Steel |
Tianshan Aluminum and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Anhui Fuhuang
The main advantage of trading using opposite Tianshan Aluminum and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Anhui Fuhuang 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 Anhui Fuhuang will offset losses from the drop in Anhui Fuhuang's long position.| Tianshan Aluminum vs. Jiangxi Lianchuang Opto electronic | Tianshan Aluminum vs. Queclink Wireless Solutions | Tianshan Aluminum vs. Easyhome New Retail | Tianshan Aluminum vs. Huizhou Speed Wireless |
| Anhui Fuhuang vs. Zijin Mining Group | Anhui Fuhuang vs. Wanhua Chemical Group | Anhui Fuhuang vs. Baoshan Iron Steel | Anhui Fuhuang vs. Shandong Gold Mining |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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