Correlation Between Tianshan Aluminum and Huizhou Speed
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By analyzing existing cross correlation between Tianshan Aluminum Group and Huizhou Speed Wireless, you can compare the effects of market volatilities on Tianshan Aluminum and Huizhou Speed 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 Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Huizhou Speed.
Diversification Opportunities for Tianshan Aluminum and Huizhou Speed
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Huizhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless 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 Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Huizhou Speed go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Huizhou Speed
Assuming the 90 days trading horizon Tianshan Aluminum is expected to generate 5.79 times less return on investment than Huizhou Speed. But when comparing it to its historical volatility, Tianshan Aluminum Group is 2.11 times less risky than Huizhou Speed. It trades about 0.02 of its potential returns per unit of risk. Huizhou Speed Wireless is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 788.00 in Huizhou Speed Wireless on October 16, 2024 and sell it today you would earn a total of 430.00 from holding Huizhou Speed Wireless or generate 54.57% 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. Huizhou Speed Wireless
Performance |
| Timeline |
| Tianshan Aluminum |
| Huizhou Speed Wireless |
Tianshan Aluminum and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Huizhou Speed
The main advantage of trading using opposite Tianshan Aluminum and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.| Tianshan Aluminum vs. Kweichow Moutai Co | Tianshan Aluminum vs. Shenzhen Mindray Bio Medical | Tianshan Aluminum vs. Jiangsu Pacific Quartz | Tianshan Aluminum vs. G bits Network Technology |
| Huizhou Speed vs. Double Medical Technology | Huizhou Speed vs. Tianshan Aluminum Group | Huizhou Speed vs. Chison Medical Technologies | Huizhou Speed vs. Zhejiang Yongjin Metal |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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