Correlation Between Tianshan Aluminum and Peoples Insurance
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By analyzing existing cross correlation between Tianshan Aluminum Group and Peoples Insurance of, you can compare the effects of market volatilities on Tianshan Aluminum and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Peoples Insurance.
Diversification Opportunities for Tianshan Aluminum and Peoples Insurance
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshan and Peoples is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Peoples Insurance go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Peoples Insurance
Assuming the 90 days trading horizon Tianshan Aluminum is expected to generate 7.53 times less return on investment than Peoples Insurance. In addition to that, Tianshan Aluminum is 1.3 times more volatile than Peoples Insurance of. It trades about 0.01 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.13 per unit of volatility. If you would invest 532.00 in Peoples Insurance of on September 1, 2024 and sell it today you would earn a total of 192.00 from holding Peoples Insurance of or generate 36.09% 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. Peoples Insurance of
Performance |
| Timeline |
| Tianshan Aluminum |
| Peoples Insurance |
Tianshan Aluminum and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Peoples Insurance
The main advantage of trading using opposite Tianshan Aluminum and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Tianshan Aluminum vs. BYD Co Ltd | Tianshan Aluminum vs. China Mobile Limited | Tianshan Aluminum vs. Agricultural Bank of | Tianshan Aluminum vs. Industrial and Commercial |
| Peoples Insurance vs. Ming Yang Smart | Peoples Insurance vs. 159681 | Peoples Insurance vs. 159005 | Peoples Insurance vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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