Correlation Between Tianshan Aluminum and Kunwu Jiuding
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By analyzing existing cross correlation between Tianshan Aluminum Group and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Tianshan Aluminum and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Kunwu Jiuding.
Diversification Opportunities for Tianshan Aluminum and Kunwu Jiuding
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshan and Kunwu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Kunwu Jiuding
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.56 times more return on investment than Kunwu Jiuding. However, Tianshan Aluminum Group is 1.79 times less risky than Kunwu Jiuding. It trades about -0.07 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.33 per unit of risk. If you would invest 820.00 in Tianshan Aluminum Group on October 11, 2024 and sell it today you would lose (20.00) from holding Tianshan Aluminum Group or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Tianshan Aluminum |
| Kunwu Jiuding Investment |
Tianshan Aluminum and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Kunwu Jiuding
The main advantage of trading using opposite Tianshan Aluminum and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Tianshan Aluminum vs. Linewell Software Co | Tianshan Aluminum vs. Jiujiang Shanshui Technology | Tianshan Aluminum vs. Keeson Technology Corp | Tianshan Aluminum vs. Ningbo Tip Rubber |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. Sportsoul Co Ltd | Kunwu Jiuding vs. Chongqing Brewery Co | Kunwu Jiuding vs. Jiangsu Jinling Sports |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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