Correlation Between Shenyang Blue and Tianshan Aluminum
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By analyzing existing cross correlation between Shenyang Blue Silver and Tianshan Aluminum Group, you can compare the effects of market volatilities on Shenyang Blue and Tianshan Aluminum 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 Shenyang Blue with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Tianshan Aluminum.
Diversification Opportunities for Shenyang Blue and Tianshan Aluminum
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Tianshan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Shenyang Blue 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 Shenyang Blue Silver are associated (or correlated) with Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Shenyang Blue and Tianshan Aluminum
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.25 times more return on investment than Tianshan Aluminum. However, Shenyang Blue is 2.25 times more volatile than Tianshan Aluminum Group. It trades about 0.06 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.06 per unit of risk. If you would invest 1,108 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 1,088 from holding Shenyang Blue Silver or generate 98.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Shenyang Blue Silver |
| Tianshan Aluminum |
Shenyang Blue and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Tianshan Aluminum
The main advantage of trading using opposite Shenyang Blue and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| Shenyang Blue vs. Jiangxi Hengda Hi Tech | Shenyang Blue vs. Runjian Communication Co | Shenyang Blue vs. Guangzhou Haige Communications | Shenyang Blue vs. Shantui Construction Machinery |
| Tianshan Aluminum vs. Sportsoul Co Ltd | Tianshan Aluminum vs. Huaibei Mining Holdings | Tianshan Aluminum vs. Western Mining Co | Tianshan Aluminum vs. Shenyang Blue Silver |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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