Correlation Between Tianshan Aluminum and China Asset
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By analyzing existing cross correlation between Tianshan Aluminum Group and China Asset Management, you can compare the effects of market volatilities on Tianshan Aluminum and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and China Asset.
Diversification Opportunities for Tianshan Aluminum and China Asset
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianshan and China is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and China Asset go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and China Asset
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 1.53 times more return on investment than China Asset. However, Tianshan Aluminum is 1.53 times more volatile than China Asset Management. It trades about 0.45 of its potential returns per unit of risk. China Asset Management is currently generating about 0.45 per unit of risk. If you would invest 787.00 in Tianshan Aluminum Group on November 1, 2024 and sell it today you would earn a total of 126.00 from holding Tianshan Aluminum Group or generate 16.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. China Asset Management
Performance |
| Timeline |
| Tianshan Aluminum |
| China Asset Management |
Tianshan Aluminum and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and China Asset
The main advantage of trading using opposite Tianshan Aluminum and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. Poly Real Estate | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou |
| China Asset vs. Hunan Mendale Hometextile | China Asset vs. Tianshan Aluminum Group | China Asset vs. Ziel Home Furnishing | China Asset vs. Sino Platinum Metals Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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