Correlation Between Shenzhen Centralcon and Luzhou Lao
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Luzhou Lao Jiao, you can compare the effects of market volatilities on Shenzhen Centralcon and Luzhou Lao 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 Shenzhen Centralcon with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Luzhou Lao.
Diversification Opportunities for Shenzhen Centralcon and Luzhou Lao
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Luzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Luzhou Lao go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Luzhou Lao
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.32 times more return on investment than Luzhou Lao. However, Shenzhen Centralcon is 1.32 times more volatile than Luzhou Lao Jiao. It trades about -0.01 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.02 per unit of risk. If you would invest 801.00 in Shenzhen Centralcon Investment on September 12, 2024 and sell it today you would lose (251.00) from holding Shenzhen Centralcon Investment or give up 31.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Shenzhen Centralcon |
| Luzhou Lao Jiao |
Shenzhen Centralcon and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Luzhou Lao
The main advantage of trading using opposite Shenzhen Centralcon and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Luzhou Lao vs. Nuode Investment Co | Luzhou Lao vs. Shenzhen Centralcon Investment | Luzhou Lao vs. Anhui Gujing Distillery | Luzhou Lao vs. Gansu Huangtai Wine marketing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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