Correlation Between Chinese Universe and Yunnan Aluminium
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By analyzing existing cross correlation between Chinese Universe Publishing and Yunnan Aluminium Co, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Yunnan Aluminium.
Diversification Opportunities for Chinese Universe and Yunnan Aluminium
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chinese and Yunnan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Chinese Universe and Yunnan Aluminium
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Yunnan Aluminium. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.07 times less risky than Yunnan Aluminium. The stock trades about -0.32 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 1,481 in Yunnan Aluminium Co on August 28, 2024 and sell it today you would lose (141.00) from holding Yunnan Aluminium Co or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Chinese Universe Pub |
| Yunnan Aluminium |
Chinese Universe and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Yunnan Aluminium
The main advantage of trading using opposite Chinese Universe and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
| Yunnan Aluminium vs. Suzhou Douson Drilling | Yunnan Aluminium vs. Jinhui Liquor Co | Yunnan Aluminium vs. Shandong Mining Machinery | Yunnan Aluminium vs. Hefei Metalforming Mach |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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