Correlation Between Jinhui Liquor and Yunnan Aluminium
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By analyzing existing cross correlation between Jinhui Liquor Co and Yunnan Aluminium Co, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of Yunnan Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Yunnan Aluminium.
Diversification Opportunities for Jinhui Liquor and Yunnan Aluminium
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Yunnan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Yunnan Aluminium Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Aluminium and Jinhui Liquor 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 Jinhui Liquor Co 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 Jinhui Liquor i.e., Jinhui Liquor and Yunnan Aluminium go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Yunnan Aluminium
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 5.72 times less return on investment than Yunnan Aluminium. In addition to that, Jinhui Liquor is 1.01 times more volatile than Yunnan Aluminium Co. It trades about 0.0 of its total potential returns per unit of risk. Yunnan Aluminium Co is currently generating about 0.02 per unit of volatility. If you would invest 1,235 in Yunnan Aluminium Co on August 31, 2024 and sell it today you would earn a total of 128.00 from holding Yunnan Aluminium Co or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Yunnan Aluminium Co
Performance |
| Timeline |
| Jinhui Liquor |
| Yunnan Aluminium |
Jinhui Liquor and Yunnan Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Yunnan Aluminium
The main advantage of trading using opposite Jinhui Liquor and Yunnan Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. Lutian Machinery Co | Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. Bank of China | Jinhui Liquor vs. Gansu Jiu Steel |
| Yunnan Aluminium vs. Xinjiang Communications Construction | Yunnan Aluminium vs. Northern United Publishing | Yunnan Aluminium vs. Jonjee Hi tech Industrial | Yunnan Aluminium vs. Zhejiang JIULI Hi tech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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