Correlation Between Yunnan Copper and CNPC Capital
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By analyzing existing cross correlation between Yunnan Copper Co and CNPC Capital Co, you can compare the effects of market volatilities on Yunnan Copper and CNPC Capital 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 Copper with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Copper and CNPC Capital.
Diversification Opportunities for Yunnan Copper and CNPC Capital
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and CNPC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Copper Co and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and Yunnan Copper 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 Copper Co are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of Yunnan Copper i.e., Yunnan Copper and CNPC Capital go up and down completely randomly.
Pair Corralation between Yunnan Copper and CNPC Capital
Assuming the 90 days trading horizon Yunnan Copper Co is expected to generate 0.89 times more return on investment than CNPC Capital. However, Yunnan Copper Co is 1.13 times less risky than CNPC Capital. It trades about 0.03 of its potential returns per unit of risk. CNPC Capital Co is currently generating about -0.06 per unit of risk. If you would invest 1,246 in Yunnan Copper Co on September 27, 2024 and sell it today you would earn a total of 8.00 from holding Yunnan Copper Co or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yunnan Copper Co vs. CNPC Capital Co
Performance |
| Timeline |
| Yunnan Copper |
| CNPC Capital |
Yunnan Copper and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Copper and CNPC Capital
The main advantage of trading using opposite Yunnan Copper and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Copper position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| Yunnan Copper vs. Wanhua Chemical Group | Yunnan Copper vs. Shandong Gold Mining | Yunnan Copper vs. Rongsheng Petrochemical Co | Yunnan Copper vs. Inner Mongolia BaoTou |
| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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