Correlation Between Luzhou Lao and China Union
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luzhou Lao Jiao and China Union Holdings, you can compare the effects of market volatilities on Luzhou Lao and China Union 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 Luzhou Lao with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and China Union.
Diversification Opportunities for Luzhou Lao and China Union
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luzhou and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Luzhou Lao Jiao and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Luzhou Lao 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 Luzhou Lao Jiao are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Luzhou Lao i.e., Luzhou Lao and China Union go up and down completely randomly.
Pair Corralation between Luzhou Lao and China Union
Assuming the 90 days trading horizon Luzhou Lao Jiao is expected to under-perform the China Union. But the stock apears to be less risky and, when comparing its historical volatility, Luzhou Lao Jiao is 1.63 times less risky than China Union. The stock trades about -0.3 of its potential returns per unit of risk. The China Union Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 416.00 in China Union Holdings on October 28, 2024 and sell it today you would lose (16.00) from holding China Union Holdings or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luzhou Lao Jiao vs. China Union Holdings
Performance |
| Timeline |
| Luzhou Lao Jiao |
| China Union Holdings |
Luzhou Lao and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luzhou Lao and China Union
The main advantage of trading using opposite Luzhou Lao and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao position performs unexpectedly, China Union 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 Union will offset losses from the drop in China Union's long position.| Luzhou Lao vs. Agricultural Bank of | Luzhou Lao vs. Ping An Insurance | Luzhou Lao vs. HeNan Splendor Science | Luzhou Lao vs. Beijing Baolande Software |
| China Union vs. Zhejiang Yinlun Machinery | China Union vs. Shenzhen Zhongzhuang Construction | China Union vs. Suzhou Xingye Material | China Union vs. Guangzhou KDT 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |