Correlation Between XCMG Construction and Luyin Investment
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By analyzing existing cross correlation between XCMG Construction Machinery and Luyin Investment Group, you can compare the effects of market volatilities on XCMG Construction and Luyin Investment 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 XCMG Construction with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Luyin Investment.
Diversification Opportunities for XCMG Construction and Luyin Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XCMG and Luyin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and XCMG Construction 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 XCMG Construction Machinery are associated (or correlated) with Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of XCMG Construction i.e., XCMG Construction and Luyin Investment go up and down completely randomly.
Pair Corralation between XCMG Construction and Luyin Investment
Assuming the 90 days trading horizon XCMG Construction Machinery is expected to generate 1.43 times more return on investment than Luyin Investment. However, XCMG Construction is 1.43 times more volatile than Luyin Investment Group. It trades about 0.57 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.28 per unit of risk. If you would invest 743.00 in XCMG Construction Machinery on December 1, 2024 and sell it today you would earn a total of 138.00 from holding XCMG Construction Machinery or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Luyin Investment Group
Performance |
| Timeline |
| XCMG Construction |
| Luyin Investment |
XCMG Construction and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Luyin Investment
The main advantage of trading using opposite XCMG Construction and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| XCMG Construction vs. Yili Chuanning Biotechnology | XCMG Construction vs. Dhc Software Co | XCMG Construction vs. GuoChuang Software Co | XCMG Construction vs. Liaoning Chengda Biotechnology |
| Luyin Investment vs. Fsilon Furnishing and | Luyin Investment vs. Dazhong Transportation Group | Luyin Investment vs. Chongqing Shunbo Aluminum | Luyin Investment vs. Masterwork Machinery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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