Correlation Between Tianshan Aluminum and Hainan Mining
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By analyzing existing cross correlation between Tianshan Aluminum Group and Hainan Mining Co, you can compare the effects of market volatilities on Tianshan Aluminum and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Hainan Mining.
Diversification Opportunities for Tianshan Aluminum and Hainan Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianshan and Hainan is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Hainan Mining go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Hainan Mining
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 1.03 times more return on investment than Hainan Mining. However, Tianshan Aluminum is 1.03 times more volatile than Hainan Mining Co. It trades about 0.02 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of risk. If you would invest 829.00 in Tianshan Aluminum Group on October 21, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Hainan Mining Co
Performance |
| Timeline |
| Tianshan Aluminum |
| Hainan Mining |
Tianshan Aluminum and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Hainan Mining
The main advantage of trading using opposite Tianshan Aluminum and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Tianshan Aluminum vs. Sinomach Automobile Co | Tianshan Aluminum vs. Hainan Airlines Co | Tianshan Aluminum vs. Juneyao Airlines | Tianshan Aluminum vs. Hubei Yingtong Telecommunication |
| Hainan Mining vs. Rising Nonferrous Metals | Hainan Mining vs. Heilongjiang Transport Development | Hainan Mining vs. Tianshan Aluminum Group | Hainan Mining vs. Anyang Iron Steel |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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