Correlation Between Yunnan Yuntou and Western Mining
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By analyzing existing cross correlation between Yunnan Yuntou Ecology and Western Mining Co, you can compare the effects of market volatilities on Yunnan Yuntou and Western Mining 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 Yuntou with a short position of Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Yuntou and Western Mining.
Diversification Opportunities for Yunnan Yuntou and Western Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Western is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Yuntou Ecology and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining and Yunnan Yuntou 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 Yuntou Ecology are associated (or correlated) with Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Yunnan Yuntou i.e., Yunnan Yuntou and Western Mining go up and down completely randomly.
Pair Corralation between Yunnan Yuntou and Western Mining
Assuming the 90 days trading horizon Yunnan Yuntou Ecology is expected to generate 1.23 times more return on investment than Western Mining. However, Yunnan Yuntou is 1.23 times more volatile than Western Mining Co. It trades about 0.21 of its potential returns per unit of risk. Western Mining Co is currently generating about -0.08 per unit of risk. If you would invest 558.00 in Yunnan Yuntou Ecology on August 24, 2024 and sell it today you would earn a total of 60.00 from holding Yunnan Yuntou Ecology or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Yuntou Ecology vs. Western Mining Co
Performance |
| Timeline |
| Yunnan Yuntou Ecology |
| Western Mining |
Yunnan Yuntou and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Yuntou and Western Mining
The main advantage of trading using opposite Yunnan Yuntou and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Yuntou position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Yunnan Yuntou vs. Chengdu Kanghua Biological | Yunnan Yuntou vs. Beijing Wantai Biological | Yunnan Yuntou vs. Suzhou Novoprotein Scientific | Yunnan Yuntou vs. Aluminum Corp of |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Shandong Gold Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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