Correlation Between Tianshan Aluminum and Bloomage Biotechnology
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By analyzing existing cross correlation between Tianshan Aluminum Group and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Tianshan Aluminum and Bloomage Biotechnology 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 Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Bloomage Biotechnology.
Diversification Opportunities for Tianshan Aluminum and Bloomage Biotechnology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Bloomage is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology 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 Bloomage Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomage Biotechnology has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Bloomage Biotechnology
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.9 times more return on investment than Bloomage Biotechnology. However, Tianshan Aluminum Group is 1.11 times less risky than Bloomage Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.07 per unit of risk. If you would invest 829.00 in Tianshan Aluminum Group on October 13, 2024 and sell it today you would lose (9.00) from holding Tianshan Aluminum Group or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Tianshan Aluminum |
| Bloomage Biotechnology |
Tianshan Aluminum and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Bloomage Biotechnology
The main advantage of trading using opposite Tianshan Aluminum and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Bloomage Biotechnology 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 Bloomage Biotechnology will offset losses from the drop in Bloomage Biotechnology's long position.| Tianshan Aluminum vs. Jiajia Food Group | Tianshan Aluminum vs. Fujian Oriental Silver | Tianshan Aluminum vs. Shanghai Ziyan Foods | Tianshan Aluminum vs. Guilin Seamild Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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