Correlation Between Tianshan Aluminum and Guotai Epoint
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By analyzing existing cross correlation between Tianshan Aluminum Group and Guotai Epoint Software, you can compare the effects of market volatilities on Tianshan Aluminum and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Guotai Epoint.
Diversification Opportunities for Tianshan Aluminum and Guotai Epoint
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianshan and Guotai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Guotai Epoint go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Guotai Epoint
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.73 times more return on investment than Guotai Epoint. However, Tianshan Aluminum Group is 1.38 times less risky than Guotai Epoint. It trades about 0.52 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about 0.16 per unit of risk. If you would invest 776.00 in Tianshan Aluminum Group on November 3, 2024 and sell it today you would earn a total of 137.00 from holding Tianshan Aluminum Group or generate 17.65% 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. Guotai Epoint Software
Performance |
| Timeline |
| Tianshan Aluminum |
| Guotai Epoint Software |
Tianshan Aluminum and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Guotai Epoint
The main advantage of trading using opposite Tianshan Aluminum and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Tianshan Aluminum vs. Shengda Mining Co | Tianshan Aluminum vs. Changjiang Publishing Media | Tianshan Aluminum vs. Xinjiang Baodi Mining | Tianshan Aluminum vs. Pengxin International Mining |
| Guotai Epoint vs. Industrial and Commercial | Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. Agricultural Bank of | Guotai Epoint vs. China Mobile Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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