Correlation Between EMX Royalty and China Yuchai
Can any of the company-specific risk be diversified away by investing in both EMX Royalty and China Yuchai at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EMX Royalty and China Yuchai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and China Yuchai International, you can compare the effects of market volatilities on EMX Royalty and China Yuchai 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 EMX Royalty with a short position of China Yuchai. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and China Yuchai.
Diversification Opportunities for EMX Royalty and China Yuchai
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EMX and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and China Yuchai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yuchai Interna and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with China Yuchai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yuchai Interna has no effect on the direction of EMX Royalty i.e., EMX Royalty and China Yuchai go up and down completely randomly.
Pair Corralation between EMX Royalty and China Yuchai
Considering the 90-day investment horizon EMX Royalty is expected to generate 1.52 times less return on investment than China Yuchai. In addition to that, EMX Royalty is 1.06 times more volatile than China Yuchai International. It trades about 0.1 of its total potential returns per unit of risk. China Yuchai International is currently generating about 0.17 per unit of volatility. If you would invest 2,848 in China Yuchai International on August 14, 2025 and sell it today you would earn a total of 1,065 from holding China Yuchai International or generate 37.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMX Royalty Corp vs. China Yuchai International
Performance |
| Timeline |
| EMX Royalty Corp |
| China Yuchai Interna |
EMX Royalty and China Yuchai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and China Yuchai
The main advantage of trading using opposite EMX Royalty and China Yuchai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, China Yuchai 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 China Yuchai will offset losses from the drop in China Yuchai's long position.| EMX Royalty vs. Western Copper and | EMX Royalty vs. Nouveau Monde Graphite | EMX Royalty vs. Lifezone Metals Limited | EMX Royalty vs. NioCorp Developments Ltd |
| China Yuchai vs. Tennant Company | China Yuchai vs. Gorman Rupp | China Yuchai vs. Babcock Wilcox Enterprises | China Yuchai vs. Compass Diversified Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |