Correlation Between Tianshan Aluminum and Anhui Transport
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By analyzing existing cross correlation between Tianshan Aluminum Group and Anhui Transport Consulting, you can compare the effects of market volatilities on Tianshan Aluminum and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Anhui Transport.
Diversification Opportunities for Tianshan Aluminum and Anhui Transport
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshan and Anhui is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Anhui Transport go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Anhui Transport
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to under-perform the Anhui Transport. In addition to that, Tianshan Aluminum is 1.04 times more volatile than Anhui Transport Consulting. It trades about -0.09 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.04 per unit of volatility. If you would invest 948.00 in Anhui Transport Consulting on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Anhui Transport Consulting or generate 1.27% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Tianshan Aluminum |
| Anhui Transport Cons |
Tianshan Aluminum and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Anhui Transport
The main advantage of trading using opposite Tianshan Aluminum and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Tianshan Aluminum vs. China Petroleum Chemical | Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. China Railway Group | Tianshan Aluminum vs. China Railway Construction |
| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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