Correlation Between Yunnan Aluminium and Henan Shuanghui
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By analyzing existing cross correlation between Yunnan Aluminium Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on Yunnan Aluminium and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and Henan Shuanghui.
Diversification Opportunities for Yunnan Aluminium and Henan Shuanghui
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yunnan and Henan is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and Henan Shuanghui
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to generate 2.3 times more return on investment than Henan Shuanghui. However, Yunnan Aluminium is 2.3 times more volatile than Henan Shuanghui Investment. It trades about 0.17 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.22 per unit of risk. If you would invest 1,468 in Yunnan Aluminium Co on October 17, 2024 and sell it today you would earn a total of 112.00 from holding Yunnan Aluminium Co or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Yunnan Aluminium |
| Henan Shuanghui Inve |
Yunnan Aluminium and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and Henan Shuanghui
The main advantage of trading using opposite Yunnan Aluminium and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Yunnan Aluminium vs. Henan Shuanghui Investment | Yunnan Aluminium vs. Jiangsu Jinling Sports | Yunnan Aluminium vs. Zoje Resources Investment | Yunnan Aluminium vs. Zhongshan Public Utilities |
| Henan Shuanghui vs. Hunan TV Broadcast | Henan Shuanghui vs. Tongyu Communication | Henan Shuanghui vs. China Mobile Limited | Henan Shuanghui vs. Iat Automobile Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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