Correlation Between Tianshan Aluminum and Dow Jones
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By analyzing existing cross correlation between Tianshan Aluminum Group and Dow Jones Industrial, you can compare the effects of market volatilities on Tianshan Aluminum and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Dow Jones.
Diversification Opportunities for Tianshan Aluminum and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshan and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Dow Jones go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Dow Jones
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to under-perform the Dow Jones. In addition to that, Tianshan Aluminum is 2.61 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshan Aluminum Group vs. Dow Jones Industrial
Performance |
| Timeline |
Tianshan Aluminum and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Tianshan Aluminum Group
Pair trading matchups for Tianshan Aluminum
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Tianshan Aluminum and Dow Jones
The main advantage of trading using opposite Tianshan Aluminum and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Tianshan Aluminum vs. Lutian Machinery Co | Tianshan Aluminum vs. Changshu Tongrun Auto | Tianshan Aluminum vs. PetroChina Co Ltd | Tianshan Aluminum vs. Bank of China |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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