Correlation Between Huaibei Mining and Tianshan Aluminum
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By analyzing existing cross correlation between Huaibei Mining Holdings and Tianshan Aluminum Group, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Tianshan Aluminum.
Diversification Opportunities for Huaibei Mining and Tianshan Aluminum
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Huaibei and Tianshan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Huaibei Mining and Tianshan Aluminum
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Tianshan Aluminum. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.07 times less risky than Tianshan Aluminum. The stock trades about -0.03 of its potential returns per unit of risk. The Tianshan Aluminum Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 484.00 in Tianshan Aluminum Group on October 29, 2024 and sell it today you would earn a total of 421.00 from holding Tianshan Aluminum Group or generate 86.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Tianshan Aluminum |
Huaibei Mining and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Tianshan Aluminum
The main advantage of trading using opposite Huaibei Mining and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. GRIPM Advanced Materials | Huaibei Mining vs. Thunder Software Technology | Huaibei Mining vs. Shanghai Phichem Material | Huaibei Mining vs. Jiangnan Mould Plastic |
| Tianshan Aluminum vs. Jiangxi Lianchuang Opto electronic | Tianshan Aluminum vs. Queclink Wireless Solutions | Tianshan Aluminum vs. Easyhome New Retail | Tianshan Aluminum vs. Huizhou Speed Wireless |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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