Correlation Between Zhejiang JIULI and Yunnan Aluminium
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Yunnan Aluminium Co, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Yunnan Aluminium.
Diversification Opportunities for Zhejiang JIULI and Yunnan Aluminium
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Yunnan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Yunnan Aluminium
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.84 times more return on investment than Yunnan Aluminium. However, Zhejiang JIULI Hi tech is 1.19 times less risky than Yunnan Aluminium. It trades about 0.06 of its potential returns per unit of risk. Yunnan Aluminium Co is currently generating about 0.04 per unit of risk. If you would invest 1,919 in Zhejiang JIULI Hi tech on September 2, 2024 and sell it today you would earn a total of 537.00 from holding Zhejiang JIULI Hi tech or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Yunnan Aluminium |
Zhejiang JIULI and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Yunnan Aluminium
The main advantage of trading using opposite Zhejiang JIULI and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI vs. Shandong Gold Mining | Zhejiang JIULI vs. Rongsheng Petrochemical Co |
| Yunnan Aluminium vs. Northking Information Technology | Yunnan Aluminium vs. Suzhou Weizhixiang Food | Yunnan Aluminium vs. HaiXin Foods Co | Yunnan Aluminium vs. Hubei Forbon 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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