Correlation Between Tianshan Aluminum and Lontium Semiconductor
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By analyzing existing cross correlation between Tianshan Aluminum Group and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Tianshan Aluminum and Lontium Semiconductor 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 Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Lontium Semiconductor.
Diversification Opportunities for Tianshan Aluminum and Lontium Semiconductor
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianshan and Lontium is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor 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 Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Lontium Semiconductor
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.31 times more return on investment than Lontium Semiconductor. However, Tianshan Aluminum Group is 3.23 times less risky than Lontium Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about -0.02 per unit of risk. If you would invest 845.00 in Tianshan Aluminum Group on October 16, 2024 and sell it today you would earn a total of 11.00 from holding Tianshan Aluminum Group or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Tianshan Aluminum |
| Lontium Semiconductor |
Tianshan Aluminum and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshan Aluminum and Lontium Semiconductor
The main advantage of trading using opposite Tianshan Aluminum and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Lontium Semiconductor 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Tianshan Aluminum vs. Kweichow Moutai Co | Tianshan Aluminum vs. Shenzhen Mindray Bio Medical | Tianshan Aluminum vs. Jiangsu Pacific Quartz | Tianshan Aluminum vs. G bits Network Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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