Correlation Between Luzhou Lao and Allgens Medical
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By analyzing existing cross correlation between Luzhou Lao Jiao and Allgens Medical Technology, you can compare the effects of market volatilities on Luzhou Lao and Allgens Medical 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 Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and Allgens Medical.
Diversification Opportunities for Luzhou Lao and Allgens Medical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luzhou and Allgens is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Luzhou Lao Jiao and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Luzhou Lao i.e., Luzhou Lao and Allgens Medical go up and down completely randomly.
Pair Corralation between Luzhou Lao and Allgens Medical
Assuming the 90 days trading horizon Luzhou Lao is expected to generate 3.44 times less return on investment than Allgens Medical. In addition to that, Luzhou Lao is 1.03 times more volatile than Allgens Medical Technology. It trades about 0.03 of its total potential returns per unit of risk. Allgens Medical Technology is currently generating about 0.11 per unit of volatility. If you would invest 1,627 in Allgens Medical Technology on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Allgens Medical Technology or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luzhou Lao Jiao vs. Allgens Medical Technology
Performance |
| Timeline |
| Luzhou Lao Jiao |
| Allgens Medical Tech |
Luzhou Lao and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luzhou Lao and Allgens Medical
The main advantage of trading using opposite Luzhou Lao and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Luzhou Lao vs. Eastern Communications Co | Luzhou Lao vs. Shenzhen Kexin Communication | Luzhou Lao vs. Iat Automobile Technology | Luzhou Lao vs. Sinofibers Technology Co |
| Allgens Medical vs. Chengdu Kanghua Biological | Allgens Medical vs. Beijing Wantai Biological | Allgens Medical vs. Suzhou Novoprotein Scientific | Allgens Medical vs. Aluminum Corp of |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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