Correlation Between Hubei Xingfa and Yunnan Aluminium
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Yunnan Aluminium Co, you can compare the effects of market volatilities on Hubei Xingfa 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 Hubei Xingfa with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Yunnan Aluminium.
Diversification Opportunities for Hubei Xingfa and Yunnan Aluminium
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Yunnan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Hubei Xingfa 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 Hubei Xingfa Chemicals 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 Hubei Xingfa i.e., Hubei Xingfa and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Yunnan Aluminium
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Yunnan Aluminium. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Xingfa Chemicals is 1.81 times less risky than Yunnan Aluminium. The stock trades about -0.23 of its potential returns per unit of risk. The Yunnan Aluminium Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,468 in Yunnan Aluminium Co on October 17, 2024 and sell it today you would earn a total of 102.00 from holding Yunnan Aluminium Co or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Yunnan Aluminium |
Hubei Xingfa and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Yunnan Aluminium
The main advantage of trading using opposite Hubei Xingfa and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa 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.| Hubei Xingfa vs. Impulse Qingdao Health | Hubei Xingfa vs. Guangdong Silvere Sci | Hubei Xingfa vs. JCHX Mining Management | Hubei Xingfa vs. Yunnan Jianzhijia Health Chain |
| Yunnan Aluminium vs. Cansino Biologics | Yunnan Aluminium vs. Hubei Xingfa Chemicals | Yunnan Aluminium vs. Guangdong Transtek Medical | Yunnan Aluminium vs. Eyebright Medical 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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