Correlation Between Fujian Oriental and Tianshan Aluminum
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By analyzing existing cross correlation between Fujian Oriental Silver and Tianshan Aluminum Group, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Tianshan Aluminum.
Diversification Opportunities for Fujian Oriental and Tianshan Aluminum
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Tianshan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental 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 Fujian Oriental 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 Fujian Oriental 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 Fujian Oriental i.e., Fujian Oriental and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Fujian Oriental and Tianshan Aluminum
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Tianshan Aluminum. In addition to that, Fujian Oriental is 1.58 times more volatile than Tianshan Aluminum Group. It trades about -0.03 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 per unit of volatility. If you would invest 829.00 in Tianshan Aluminum Group on October 13, 2024 and sell it today you would lose (9.00) from holding Tianshan Aluminum Group or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Fujian Oriental Silver |
| Tianshan Aluminum |
Fujian Oriental and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Tianshan Aluminum
The main advantage of trading using opposite Fujian Oriental and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Dalian Thermal Power | Fujian Oriental vs. Jiahe Foods Industry | Fujian Oriental vs. Rising Nonferrous Metals | Fujian Oriental vs. Anhui Tongguan Copper |
| Tianshan Aluminum vs. Jiajia Food Group | Tianshan Aluminum vs. Fujian Oriental Silver | Tianshan Aluminum vs. Shanghai Ziyan Foods | Tianshan Aluminum vs. Guilin Seamild Foods |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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