Correlation Between Guangdong Transtek and Yunnan Aluminium
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By analyzing existing cross correlation between Guangdong Transtek Medical and Yunnan Aluminium Co, you can compare the effects of market volatilities on Guangdong Transtek 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 Guangdong Transtek with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Yunnan Aluminium.
Diversification Opportunities for Guangdong Transtek and Yunnan Aluminium
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangdong and Yunnan is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Guangdong Transtek 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 Guangdong Transtek Medical 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 Guangdong Transtek i.e., Guangdong Transtek and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Yunnan Aluminium
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Yunnan Aluminium. In addition to that, Guangdong Transtek is 1.45 times more volatile than Yunnan Aluminium Co. It trades about -0.32 of its total potential returns per unit of risk. Yunnan Aluminium Co is currently generating about 0.39 per unit of volatility. If you would invest 1,392 in Yunnan Aluminium Co on October 30, 2024 and sell it today you would earn a total of 256.00 from holding Yunnan Aluminium Co or generate 18.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Guangdong Transtek |
| Yunnan Aluminium |
Guangdong Transtek and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Yunnan Aluminium
The main advantage of trading using opposite Guangdong Transtek and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek 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.| Guangdong Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek vs. China Construction Bank |
| Yunnan Aluminium vs. Ping An Insurance | Yunnan Aluminium vs. Tibet Huayu Mining | Yunnan Aluminium vs. Marssenger Kitchenware Co | Yunnan Aluminium vs. Industrial Bank 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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