Correlation Between Tianshan Aluminum and Bomesc Offshore
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By analyzing existing cross correlation between Tianshan Aluminum Group and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Tianshan Aluminum and Bomesc Offshore 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 Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Bomesc Offshore.
Diversification Opportunities for Tianshan Aluminum and Bomesc Offshore
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshan and Bomesc is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Bomesc Offshore Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomesc Offshore Engi 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 Bomesc Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomesc Offshore Engi has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Bomesc Offshore
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 1.13 times more return on investment than Bomesc Offshore. However, Tianshan Aluminum is 1.13 times more volatile than Bomesc Offshore Engineering. It trades about 0.13 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.13 per unit of risk. If you would invest 656.00 in Tianshan Aluminum Group on September 3, 2024 and sell it today you would earn a total of 151.00 from holding Tianshan Aluminum Group or generate 23.02% 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. Bomesc Offshore Engineering
Performance |
| Timeline |
| Tianshan Aluminum |
| Bomesc Offshore Engi |
Tianshan Aluminum and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Bomesc Offshore
The main advantage of trading using opposite Tianshan Aluminum and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Bomesc Offshore 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 Bomesc Offshore will offset losses from the drop in Bomesc Offshore's long position.| Tianshan Aluminum vs. Cultural Investment Holdings | Tianshan Aluminum vs. Gome Telecom Equipment | Tianshan Aluminum vs. Bus Online Co | Tianshan Aluminum vs. Holitech Technology Co |
| Bomesc Offshore vs. XinJiang GuoTong Pipeline | Bomesc Offshore vs. Tianshan Aluminum Group | Bomesc Offshore vs. Dymatic Chemicals | Bomesc Offshore vs. Western Metal Materials |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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