Correlation Between Yunnan Copper and Anhui Liuguo
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By analyzing existing cross correlation between Yunnan Copper Co and Anhui Liuguo Chemical, you can compare the effects of market volatilities on Yunnan Copper and Anhui Liuguo 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 Anhui Liuguo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Copper and Anhui Liuguo.
Diversification Opportunities for Yunnan Copper and Anhui Liuguo
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yunnan and Anhui is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Copper Co and Anhui Liuguo Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Liuguo Chemical 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 Anhui Liuguo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Liuguo Chemical has no effect on the direction of Yunnan Copper i.e., Yunnan Copper and Anhui Liuguo go up and down completely randomly.
Pair Corralation between Yunnan Copper and Anhui Liuguo
Assuming the 90 days trading horizon Yunnan Copper Co is expected to under-perform the Anhui Liuguo. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Copper Co is 4.56 times less risky than Anhui Liuguo. The stock trades about -0.06 of its potential returns per unit of risk. The Anhui Liuguo Chemical is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Anhui Liuguo Chemical on September 14, 2024 and sell it today you would earn a total of 124.00 from holding Anhui Liuguo Chemical or generate 24.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Copper Co vs. Anhui Liuguo Chemical
Performance |
| Timeline |
| Yunnan Copper |
| Anhui Liuguo Chemical |
Yunnan Copper and Anhui Liuguo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Copper and Anhui Liuguo
The main advantage of trading using opposite Yunnan Copper and Anhui Liuguo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Copper position performs unexpectedly, Anhui Liuguo 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 Anhui Liuguo will offset losses from the drop in Anhui Liuguo's long position.| Yunnan Copper vs. Zijin Mining Group | Yunnan Copper vs. Wanhua Chemical Group | Yunnan Copper vs. Baoshan Iron Steel | Yunnan Copper vs. Shandong Gold Mining |
| Anhui Liuguo vs. Impulse Qingdao Health | Anhui Liuguo vs. Will Semiconductor Co | Anhui Liuguo vs. Yunnan Copper Co | Anhui Liuguo vs. Mingchen Health Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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