Correlation Between Yunnan Aluminium and Luxi Chemical
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By analyzing existing cross correlation between Yunnan Aluminium Co and Luxi Chemical Group, you can compare the effects of market volatilities on Yunnan Aluminium and Luxi Chemical 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 Luxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and Luxi Chemical.
Diversification Opportunities for Yunnan Aluminium and Luxi Chemical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Luxi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and Luxi Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxi Chemical Group 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 Luxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxi Chemical Group has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and Luxi Chemical go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and Luxi Chemical
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to generate 1.13 times more return on investment than Luxi Chemical. However, Yunnan Aluminium is 1.13 times more volatile than Luxi Chemical Group. It trades about 0.0 of its potential returns per unit of risk. Luxi Chemical Group is currently generating about 0.0 per unit of risk. If you would invest 1,409 in Yunnan Aluminium Co on September 1, 2024 and sell it today you would lose (46.00) from holding Yunnan Aluminium Co or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. Luxi Chemical Group
Performance |
| Timeline |
| Yunnan Aluminium |
| Luxi Chemical Group |
Yunnan Aluminium and Luxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and Luxi Chemical
The main advantage of trading using opposite Yunnan Aluminium and Luxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, Luxi Chemical 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 Luxi Chemical will offset losses from the drop in Luxi Chemical'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 |
| Luxi Chemical vs. Zijin Mining Group | Luxi Chemical vs. Wanhua Chemical Group | Luxi Chemical vs. Baoshan Iron Steel | Luxi Chemical vs. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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