Correlation Between China Mobile and Tianshan Aluminum
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By analyzing existing cross correlation between China Mobile Limited and Tianshan Aluminum Group, you can compare the effects of market volatilities on China Mobile 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 China Mobile with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Tianshan Aluminum.
Diversification Opportunities for China Mobile and Tianshan Aluminum
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Tianshan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and China Mobile 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 China Mobile Limited 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 China Mobile i.e., China Mobile and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between China Mobile and Tianshan Aluminum
Assuming the 90 days trading horizon China Mobile is expected to generate 11.22 times less return on investment than Tianshan Aluminum. But when comparing it to its historical volatility, China Mobile Limited is 2.0 times less risky than Tianshan Aluminum. It trades about 0.01 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 671.00 in Tianshan Aluminum Group on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Tianshan Aluminum Group or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Tianshan Aluminum Group
Performance |
| Timeline |
| China Mobile Limited |
| Tianshan Aluminum |
China Mobile and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Tianshan Aluminum
The main advantage of trading using opposite China Mobile and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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.| China Mobile vs. Andon Health Co | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Impulse Qingdao Health | China Mobile vs. Metro Investment Development |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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