Correlation Between Guangzhou Tinci and Yunnan Copper
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Yunnan Copper Co, you can compare the effects of market volatilities on Guangzhou Tinci and Yunnan Copper 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 Guangzhou Tinci with a short position of Yunnan Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Yunnan Copper.
Diversification Opportunities for Guangzhou Tinci and Yunnan Copper
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Yunnan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Yunnan Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Copper and Guangzhou Tinci 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 Guangzhou Tinci Materials are associated (or correlated) with Yunnan Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Copper has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Yunnan Copper go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Yunnan Copper
Assuming the 90 days trading horizon Guangzhou Tinci is expected to generate 2.97 times less return on investment than Yunnan Copper. In addition to that, Guangzhou Tinci is 1.18 times more volatile than Yunnan Copper Co. It trades about 0.02 of its total potential returns per unit of risk. Yunnan Copper Co is currently generating about 0.09 per unit of volatility. If you would invest 1,242 in Yunnan Copper Co on November 8, 2024 and sell it today you would earn a total of 22.00 from holding Yunnan Copper Co or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Yunnan Copper Co
Performance |
| Timeline |
| Guangzhou Tinci Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yunnan Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangzhou Tinci and Yunnan Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Yunnan Copper
The main advantage of trading using opposite Guangzhou Tinci and Yunnan Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Yunnan Copper 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 Copper will offset losses from the drop in Yunnan Copper's long position.The idea behind Guangzhou Tinci Materials and Yunnan Copper Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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