Correlation Between Tianshan Aluminum and China Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianshan Aluminum Group and China Life Insurance, you can compare the effects of market volatilities on Tianshan Aluminum and China Life 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 Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and China Life.
Diversification Opportunities for Tianshan Aluminum and China Life
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianshan and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life 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 China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and China Life go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and China Life
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.9 times more return on investment than China Life. However, Tianshan Aluminum Group is 1.11 times less risky than China Life. It trades about 0.34 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.13 per unit of risk. If you would invest 806.00 in Tianshan Aluminum Group on October 29, 2024 and sell it today you would earn a total of 107.00 from holding Tianshan Aluminum Group or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. China Life Insurance
Performance |
| Timeline |
| Tianshan Aluminum |
| China Life Insurance |
Tianshan Aluminum and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and China Life
The main advantage of trading using opposite Tianshan Aluminum and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, China Life 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 Life will offset losses from the drop in China Life's long position.| Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou | Tianshan Aluminum vs. Huafa Industrial Co |
| China Life vs. BizConf Telecom Co | China Life vs. Shenzhen Zhongzhuang Construction | China Life vs. Agricultural Bank of | China Life vs. Wintao Communications 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |