Correlation Between Zhejiang Huayou and Yunnan Aluminium
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Yunnan Aluminium Co, you can compare the effects of market volatilities on Zhejiang Huayou 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 Zhejiang Huayou with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Yunnan Aluminium.
Diversification Opportunities for Zhejiang Huayou and Yunnan Aluminium
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Yunnan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Zhejiang Huayou 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 Zhejiang Huayou Cobalt 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 Zhejiang Huayou i.e., Zhejiang Huayou and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Yunnan Aluminium
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the Yunnan Aluminium. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Huayou Cobalt is 1.19 times less risky than Yunnan Aluminium. The stock trades about -0.06 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 16, 2024 and sell it today you would earn a total of 100.00 from holding Yunnan Aluminium Co or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Yunnan Aluminium |
Zhejiang Huayou and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Yunnan Aluminium
The main advantage of trading using opposite Zhejiang Huayou and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou 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.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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