Correlation Between Yunnan Aluminium and Puyang Huicheng
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By analyzing existing cross correlation between Yunnan Aluminium Co and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Yunnan Aluminium and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and Puyang Huicheng.
Diversification Opportunities for Yunnan Aluminium and Puyang Huicheng
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yunnan and Puyang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and Puyang Huicheng
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to generate 1.17 times more return on investment than Puyang Huicheng. However, Yunnan Aluminium is 1.17 times more volatile than Puyang Huicheng Electronic. It trades about 0.47 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.02 per unit of risk. If you would invest 1,373 in Yunnan Aluminium Co on November 3, 2024 and sell it today you would earn a total of 275.00 from holding Yunnan Aluminium Co or generate 20.03% 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. Puyang Huicheng Electronic
Performance |
| Timeline |
| Yunnan Aluminium |
| Puyang Huicheng Elec |
Yunnan Aluminium and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and Puyang Huicheng
The main advantage of trading using opposite Yunnan Aluminium and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Yunnan Aluminium vs. Anhui Huaheng Biotechnology | Yunnan Aluminium vs. Zhejiang Yongjin Metal | Yunnan Aluminium vs. Hainan Mining Co | Yunnan Aluminium vs. Citic Offshore Helicopter |
| Puyang Huicheng vs. Jointo Energy Investment | Puyang Huicheng vs. Zhongrun Resources Investment | Puyang Huicheng vs. Zhengzhou Coal Mining | Puyang Huicheng vs. Xinjiang Baodi 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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