Correlation Between Tianshan Aluminum and Guangdong Brandmax
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By analyzing existing cross correlation between Tianshan Aluminum Group and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Tianshan Aluminum and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Guangdong Brandmax.
Diversification Opportunities for Tianshan Aluminum and Guangdong Brandmax
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshan and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Guangdong Brandmax
Assuming the 90 days trading horizon Tianshan Aluminum is expected to generate 1.91 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Tianshan Aluminum Group is 1.44 times less risky than Guangdong Brandmax. It trades about 0.13 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 661.00 in Guangdong Brandmax Marketing on September 2, 2024 and sell it today you would earn a total of 318.00 from holding Guangdong Brandmax Marketing or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Tianshan Aluminum |
| Guangdong Brandmax |
Tianshan Aluminum and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Guangdong Brandmax
The main advantage of trading using opposite Tianshan Aluminum and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax'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 |
| Guangdong Brandmax vs. Tianshan Aluminum Group | Guangdong Brandmax vs. Suofeiya Home Collection | Guangdong Brandmax vs. CITIC Metal Co | Guangdong Brandmax vs. Hefei Metalforming Mach |
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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