Correlation Between Tianshan Aluminum and Ziel Home
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By analyzing existing cross correlation between Tianshan Aluminum Group and Ziel Home Furnishing, you can compare the effects of market volatilities on Tianshan Aluminum and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Ziel Home.
Diversification Opportunities for Tianshan Aluminum and Ziel Home
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianshan and Ziel is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Ziel Home go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Ziel Home
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.69 times more return on investment than Ziel Home. However, Tianshan Aluminum Group is 1.44 times less risky than Ziel Home. It trades about -0.1 of its potential returns per unit of risk. Ziel Home Furnishing is currently generating about -0.28 per unit of risk. If you would invest 845.00 in Tianshan Aluminum Group on October 15, 2024 and sell it today you would lose (25.00) from holding Tianshan Aluminum Group or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Ziel Home Furnishing
Performance |
| Timeline |
| Tianshan Aluminum |
| Ziel Home Furnishing |
Tianshan Aluminum and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Ziel Home
The main advantage of trading using opposite Tianshan Aluminum and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home'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 |
| Ziel Home vs. TongFu Microelectronics Co | Ziel Home vs. Jiangyin Jianghua Microelectronics | Ziel Home vs. Ningbo Kangqiang Electronics | Ziel Home vs. Yindu Kitchen Equipment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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