Correlation Between Yunnan Aluminium and North Huajin
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By analyzing existing cross correlation between Yunnan Aluminium Co and North Huajin Chemical, you can compare the effects of market volatilities on Yunnan Aluminium and North Huajin 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 North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and North Huajin.
Diversification Opportunities for Yunnan Aluminium and North Huajin
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and North is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical 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 North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and North Huajin go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and North Huajin
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to generate 0.92 times more return on investment than North Huajin. However, Yunnan Aluminium Co is 1.09 times less risky than North Huajin. It trades about 0.02 of its potential returns per unit of risk. North Huajin Chemical is currently generating about 0.0 per unit of risk. If you would invest 1,232 in Yunnan Aluminium Co on September 1, 2024 and sell it today you would earn a total of 131.00 from holding Yunnan Aluminium Co or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. North Huajin Chemical
Performance |
| Timeline |
| Yunnan Aluminium |
| North Huajin Chemical |
Yunnan Aluminium and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and North Huajin
The main advantage of trading using opposite Yunnan Aluminium and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Yunnan Aluminium vs. Tianshui Huatian Technology | Yunnan Aluminium vs. Emdoor Information Co | Yunnan Aluminium vs. Niutech Environment Technology | Yunnan Aluminium vs. HUAQIN TECHNOLOGY LTD |
| North Huajin vs. Aurora Optoelectronics Co | North Huajin vs. Anhui Jianghuai Automobile | North Huajin vs. China Life Insurance | North Huajin vs. Haima Automobile Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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