Correlation Between Zhejiang Yayi and Tianshan Aluminum
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Tianshan Aluminum Group, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Tianshan Aluminum.
Diversification Opportunities for Zhejiang Yayi and Tianshan Aluminum
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Tianshan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Tianshan Aluminum
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.17 times more return on investment than Tianshan Aluminum. However, Zhejiang Yayi is 1.17 times more volatile than Tianshan Aluminum Group. It trades about 0.1 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.02 per unit of risk. If you would invest 1,934 in Zhejiang Yayi Metal on September 3, 2024 and sell it today you would earn a total of 739.00 from holding Zhejiang Yayi Metal or generate 38.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Tianshan Aluminum |
Zhejiang Yayi and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Tianshan Aluminum
The main advantage of trading using opposite Zhejiang Yayi and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
| Tianshan Aluminum vs. Cultural Investment Holdings | Tianshan Aluminum vs. Gome Telecom Equipment | Tianshan Aluminum vs. Bus Online Co | Tianshan Aluminum vs. Holitech Technology Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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