Correlation Between Emdoor Information and Yunnan Aluminium
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By analyzing existing cross correlation between Emdoor Information Co and Yunnan Aluminium Co, you can compare the effects of market volatilities on Emdoor Information and Yunnan Aluminium 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 Emdoor Information with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Yunnan Aluminium.
Diversification Opportunities for Emdoor Information and Yunnan Aluminium
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emdoor and Yunnan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with Yunnan Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Aluminium has no effect on the direction of Emdoor Information i.e., Emdoor Information and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Emdoor Information and Yunnan Aluminium
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.44 times more return on investment than Yunnan Aluminium. However, Emdoor Information is 1.44 times more volatile than Yunnan Aluminium Co. It trades about 0.06 of its potential returns per unit of risk. Yunnan Aluminium Co is currently generating about 0.0 per unit of risk. If you would invest 4,211 in Emdoor Information Co on September 3, 2024 and sell it today you would earn a total of 941.00 from holding Emdoor Information Co or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Emdoor Information |
| Yunnan Aluminium |
Emdoor Information and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Yunnan Aluminium
The main advantage of trading using opposite Emdoor Information and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Yunnan Aluminium 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 Yunnan Aluminium will offset losses from the drop in Yunnan Aluminium's long position.| Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. China Mobile Limited | Emdoor Information vs. Industrial and Commercial | Emdoor Information vs. China Life Insurance |
| Yunnan Aluminium vs. Gome Telecom Equipment | Yunnan Aluminium vs. SUNSEA Telecommunications Co | Yunnan Aluminium vs. State Grid InformationCommunication | Yunnan Aluminium vs. Wuhan Yangtze Communication |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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