Correlation Between Yunnan Aluminium and Ningbo Jintian
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By analyzing existing cross correlation between Yunnan Aluminium Co and Ningbo Jintian Copper, you can compare the effects of market volatilities on Yunnan Aluminium and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and Ningbo Jintian.
Diversification Opportunities for Yunnan Aluminium and Ningbo Jintian
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yunnan and Ningbo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and Ningbo Jintian
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to under-perform the Ningbo Jintian. In addition to that, Yunnan Aluminium is 1.11 times more volatile than Ningbo Jintian Copper. It trades about -0.06 of its total potential returns per unit of risk. Ningbo Jintian Copper is currently generating about -0.01 per unit of volatility. If you would invest 611.00 in Ningbo Jintian Copper on December 1, 2024 and sell it today you would lose (3.00) from holding Ningbo Jintian Copper or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Yunnan Aluminium |
| Ningbo Jintian Copper |
Yunnan Aluminium and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and Ningbo Jintian
The main advantage of trading using opposite Yunnan Aluminium and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Yunnan Aluminium vs. Jahen Household Products | Yunnan Aluminium vs. Anhui Tongguan Copper | Yunnan Aluminium vs. North Copper Shanxi | Yunnan Aluminium vs. Marssenger Kitchenware Co |
| Ningbo Jintian vs. Western Metal Materials | Ningbo Jintian vs. GRIPM Advanced Materials | Ningbo Jintian vs. Sportsoul Co Ltd | Ningbo Jintian vs. Hengerda New Materials |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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