Correlation Between Yunnan Aluminium and Xiangtan Electrochemical
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By analyzing existing cross correlation between Yunnan Aluminium Co and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Yunnan Aluminium and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and Xiangtan Electrochemical.
Diversification Opportunities for Yunnan Aluminium and Xiangtan Electrochemical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yunnan and Xiangtan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and Xiangtan Electrochemical
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to generate 0.91 times more return on investment than Xiangtan Electrochemical. However, Yunnan Aluminium Co is 1.09 times less risky than Xiangtan Electrochemical. It trades about 0.06 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.03 per unit of risk. If you would invest 1,360 in Yunnan Aluminium Co on November 28, 2024 and sell it today you would earn a total of 246.00 from holding Yunnan Aluminium Co or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Yunnan Aluminium |
| Xiangtan Electrochemical |
Yunnan Aluminium and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and Xiangtan Electrochemical
The main advantage of trading using opposite Yunnan Aluminium and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Yunnan Aluminium vs. Huasi Agricultural Development | Yunnan Aluminium vs. Cansino Biologics | Yunnan Aluminium vs. Long Yuan Construction | Yunnan Aluminium vs. Guilin Seamild Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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