Correlation Between NBTM New and Tianshan Aluminum
Specify exactly 2 symbols:
By analyzing existing cross correlation between NBTM New Materials and Tianshan Aluminum Group, you can compare the effects of market volatilities on NBTM New 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 NBTM New with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Tianshan Aluminum.
Diversification Opportunities for NBTM New and Tianshan Aluminum
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and Tianshan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and NBTM New 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 NBTM New Materials 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 NBTM New i.e., NBTM New and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between NBTM New and Tianshan Aluminum
Assuming the 90 days trading horizon NBTM New is expected to generate 2.21 times less return on investment than Tianshan Aluminum. In addition to that, NBTM New is 1.52 times more volatile than Tianshan Aluminum Group. It trades about 0.13 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.45 per unit of volatility. If you would invest 787.00 in Tianshan Aluminum Group on November 1, 2024 and sell it today you would earn a total of 126.00 from holding Tianshan Aluminum Group or generate 16.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. Tianshan Aluminum Group
Performance |
| Timeline |
| NBTM New Materials |
| Tianshan Aluminum |
NBTM New and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Tianshan Aluminum
The main advantage of trading using opposite NBTM New and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New 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.| NBTM New vs. Tianshan Aluminum Group | NBTM New vs. Jiangsu Jinling Sports | NBTM New vs. Aluminum Corp of | NBTM New vs. Shenzhen Urban Transport |
| Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. Poly Real Estate | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |