Correlation Between Tianshan Aluminum and Sinomach Automobile
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By analyzing existing cross correlation between Tianshan Aluminum Group and Sinomach Automobile Co, you can compare the effects of market volatilities on Tianshan Aluminum and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Sinomach Automobile.
Diversification Opportunities for Tianshan Aluminum and Sinomach Automobile
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianshan and Sinomach is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Sinomach Automobile
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.76 times more return on investment than Sinomach Automobile. However, Tianshan Aluminum Group is 1.31 times less risky than Sinomach Automobile. It trades about 0.02 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 829.00 in Tianshan Aluminum Group on October 19, 2024 and sell it today you would earn a total of 43.00 from holding Tianshan Aluminum Group or generate 5.19% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Tianshan Aluminum |
| Sinomach Automobile |
Tianshan Aluminum and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Sinomach Automobile
The main advantage of trading using opposite Tianshan Aluminum and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Tianshan Aluminum vs. Jinsanjiang Silicon Material | Tianshan Aluminum vs. Kontour Medical Technology | Tianshan Aluminum vs. Yangmei Chemical Co | Tianshan Aluminum vs. Zhonghong Pulin Medical |
| Sinomach Automobile vs. Suzhou Douson Drilling | Sinomach Automobile vs. Shandong Longquan Pipeline | Sinomach Automobile vs. Nantong Haixing Electronics | Sinomach Automobile vs. Guangdong Qunxing Toys |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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