Correlation Between Yunnan Aluminium and GRIPM Advanced
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By analyzing existing cross correlation between Yunnan Aluminium Co and GRIPM Advanced Materials, you can compare the effects of market volatilities on Yunnan Aluminium and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Aluminium and GRIPM Advanced.
Diversification Opportunities for Yunnan Aluminium and GRIPM Advanced
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and GRIPM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Aluminium Co and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Yunnan Aluminium i.e., Yunnan Aluminium and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Yunnan Aluminium and GRIPM Advanced
Assuming the 90 days trading horizon Yunnan Aluminium Co is expected to under-perform the GRIPM Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Aluminium Co is 1.09 times less risky than GRIPM Advanced. The stock trades about -0.06 of its potential returns per unit of risk. The GRIPM Advanced Materials is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,964 in GRIPM Advanced Materials on September 1, 2024 and sell it today you would earn a total of 316.00 from holding GRIPM Advanced Materials or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Aluminium Co vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Yunnan Aluminium |
| GRIPM Advanced Materials |
Yunnan Aluminium and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Aluminium and GRIPM Advanced
The main advantage of trading using opposite Yunnan Aluminium and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Aluminium position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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