Correlation Between Western Superconducting and Tianshan Aluminum
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By analyzing existing cross correlation between Western Superconducting Tech and Tianshan Aluminum Group, you can compare the effects of market volatilities on Western Superconducting 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 Western Superconducting with a short position of Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Superconducting and Tianshan Aluminum.
Diversification Opportunities for Western Superconducting and Tianshan Aluminum
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and Tianshan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Western Superconducting Tech and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum and Western Superconducting 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 Western Superconducting Tech 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 Western Superconducting i.e., Western Superconducting and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Western Superconducting and Tianshan Aluminum
Assuming the 90 days trading horizon Western Superconducting Tech is expected to generate 1.23 times more return on investment than Tianshan Aluminum. However, Western Superconducting is 1.23 times more volatile than Tianshan Aluminum Group. It trades about 0.03 of its potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.02 per unit of risk. If you would invest 4,248 in Western Superconducting Tech on September 3, 2024 and sell it today you would earn a total of 193.00 from holding Western Superconducting Tech or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Superconducting Tech vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Western Superconducting |
| Tianshan Aluminum |
Western Superconducting and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Superconducting and Tianshan Aluminum
The main advantage of trading using opposite Western Superconducting and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Superconducting 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.| Western Superconducting vs. Cultural Investment Holdings | Western Superconducting vs. Gome Telecom Equipment | Western Superconducting vs. Bus Online Co | Western Superconducting vs. Holitech Technology Co |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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