Correlation Between Tianshan Aluminum and Zhejiang Yayi
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By analyzing existing cross correlation between Tianshan Aluminum Group and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Tianshan Aluminum and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Zhejiang Yayi.
Diversification Opportunities for Tianshan Aluminum and Zhejiang Yayi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshan and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Zhejiang Yayi
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to under-perform the Zhejiang Yayi. In addition to that, Tianshan Aluminum is 1.05 times more volatile than Zhejiang Yayi Metal. It trades about -0.04 of its total potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.18 per unit of volatility. If you would invest 2,450 in Zhejiang Yayi Metal on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Zhejiang Yayi Metal or generate 9.1% 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Tianshan Aluminum |
| Zhejiang Yayi Metal |
Tianshan Aluminum and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Zhejiang Yayi
The main advantage of trading using opposite Tianshan Aluminum and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Tianshan Aluminum vs. Cultural Investment Holdings | Tianshan Aluminum vs. Gome Telecom Equipment | Tianshan Aluminum vs. Bus Online Co | Tianshan Aluminum vs. Holitech Technology Co |
| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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