Correlation Between Tianshan Aluminum and New China
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By analyzing existing cross correlation between Tianshan Aluminum Group and New China Life, you can compare the effects of market volatilities on Tianshan Aluminum and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and New China.
Diversification Opportunities for Tianshan Aluminum and New China
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianshan and New is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and New China go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and New China
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.99 times more return on investment than New China. However, Tianshan Aluminum Group is 1.01 times less risky than New China. It trades about 0.11 of its potential returns per unit of risk. New China Life is currently generating about 0.09 per unit of risk. If you would invest 498.00 in Tianshan Aluminum Group on October 18, 2024 and sell it today you would earn a total of 373.00 from holding Tianshan Aluminum Group or generate 74.9% 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. New China Life
Performance |
| Timeline |
| Tianshan Aluminum |
| New China Life |
Tianshan Aluminum and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and New China
The main advantage of trading using opposite Tianshan Aluminum and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Tianshan Aluminum vs. Western Metal Materials | Tianshan Aluminum vs. Haima Automobile Group | Tianshan Aluminum vs. Xiangyang Automobile Bearing | Tianshan Aluminum vs. China Mobile Limited |
| New China vs. Sino Platinum Metals Co | New China vs. Chongqing Shunbo Aluminum | New China vs. Guangzhou Seagull Kitchen | New China vs. Tianshan Aluminum Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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