Correlation Between Tianshan Aluminum and Yingde Greatchem
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By analyzing existing cross correlation between Tianshan Aluminum Group and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Tianshan Aluminum and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Yingde Greatchem.
Diversification Opportunities for Tianshan Aluminum and Yingde Greatchem
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshan and Yingde is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Yingde Greatchem
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to under-perform the Yingde Greatchem. In addition to that, Tianshan Aluminum is 1.19 times more volatile than Yingde Greatchem Chemicals. It trades about -0.03 of its total potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about 0.09 per unit of volatility. If you would invest 2,447 in Yingde Greatchem Chemicals on September 2, 2024 and sell it today you would earn a total of 98.00 from holding Yingde Greatchem Chemicals or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Tianshan Aluminum |
| Yingde Greatchem Che |
Tianshan Aluminum and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Yingde Greatchem
The main advantage of trading using opposite Tianshan Aluminum and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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