Correlation Between Malion New and Yunnan Aluminium
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By analyzing existing cross correlation between Malion New Materials and Yunnan Aluminium Co, you can compare the effects of market volatilities on Malion New 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 Malion New with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Yunnan Aluminium.
Diversification Opportunities for Malion New and Yunnan Aluminium
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malion and Yunnan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Malion New 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 Malion New Materials 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 Malion New i.e., Malion New and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Malion New and Yunnan Aluminium
Assuming the 90 days trading horizon Malion New Materials is expected to generate 2.17 times more return on investment than Yunnan Aluminium. However, Malion New is 2.17 times more volatile than Yunnan Aluminium Co. It trades about 0.19 of its potential returns per unit of risk. Yunnan Aluminium Co is currently generating about -0.06 per unit of risk. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Malion New Materials |
| Yunnan Aluminium |
Malion New and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Yunnan Aluminium
The main advantage of trading using opposite Malion New and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New 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.| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
| Yunnan Aluminium vs. Tianshui Huatian Technology | Yunnan Aluminium vs. Emdoor Information Co | Yunnan Aluminium vs. Niutech Environment Technology | Yunnan Aluminium vs. HUAQIN TECHNOLOGY LTD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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