Correlation Between Yunnan Aluminium and CSG Holding
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By analyzing existing cross correlation between Yunnan Aluminium Co and CSG Holding Co, you can compare the effects of market volatilities on Yunnan Aluminium and CSG Holding 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 Yunnan Aluminium with a short position of CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and CSG Holding.
Diversification Opportunities for Yunnan Aluminium and CSG Holding
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and CSG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding and Yunnan Aluminium 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 Yunnan Aluminium Co are associated (or correlated) with CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and CSG Holding go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and CSG Holding
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to under-perform the CSG Holding. In addition to that, Yunnan Aluminium is 1.79 times more volatile than CSG Holding Co. It trades about -0.12 of its total potential returns per unit of risk. CSG Holding Co is currently generating about -0.03 per unit of volatility. If you would invest 558.00 in CSG Holding Co on August 30, 2024 and sell it today you would lose (7.00) from holding CSG Holding Co or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. CSG Holding Co
Performance |
| Timeline |
| Yunnan Aluminium |
| CSG Holding |
Yunnan Aluminium and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and CSG Holding
The main advantage of trading using opposite Yunnan Aluminium and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Yunnan Aluminium vs. Wanhua Chemical Group | Yunnan Aluminium vs. Rongsheng Petrochemical Co | Yunnan Aluminium vs. Hoshine Silicon Ind |
| CSG Holding vs. Hainan Airlines Co | CSG Holding vs. Markor International Home | CSG Holding vs. Guangdong Advertising Co | CSG Holding vs. DO Home Collection |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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