Correlation Between China Aluminum and Tianshan Aluminum
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By analyzing existing cross correlation between China Aluminum International and Tianshan Aluminum Group, you can compare the effects of market volatilities on China Aluminum 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 Aluminum with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Tianshan Aluminum.
Diversification Opportunities for China Aluminum and Tianshan Aluminum
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Tianshan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International 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 Aluminum 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 Aluminum International 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 Aluminum i.e., China Aluminum and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between China Aluminum and Tianshan Aluminum
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Tianshan Aluminum. But the stock apears to be less risky and, when comparing its historical volatility, China Aluminum International is 1.58 times less risky than Tianshan Aluminum. The stock trades about -0.09 of its potential returns per unit of risk. The Tianshan Aluminum Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Tianshan Aluminum Group on September 1, 2024 and sell it today you would lose (2.00) from holding Tianshan Aluminum Group or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Tianshan Aluminum Group
Performance |
| Timeline |
| China Aluminum Inter |
| Tianshan Aluminum |
China Aluminum and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Tianshan Aluminum
The main advantage of trading using opposite China Aluminum and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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 Aluminum vs. Do Fluoride Chemicals Co | China Aluminum vs. Duzhe Publishing Media | China Aluminum vs. Harbin Hatou Investment | China Aluminum vs. Southern PublishingMedia Co |
| Tianshan Aluminum vs. BYD Co Ltd | Tianshan Aluminum vs. China Mobile Limited | Tianshan Aluminum vs. Agricultural Bank of | Tianshan Aluminum vs. Industrial and Commercial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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