Correlation Between Wuliangye Yibin and Luzhou Lao
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By analyzing existing cross correlation between Wuliangye Yibin Co and Luzhou Lao Jiao, you can compare the effects of market volatilities on Wuliangye Yibin 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 Wuliangye Yibin with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuliangye Yibin and Luzhou Lao.
Diversification Opportunities for Wuliangye Yibin and Luzhou Lao
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuliangye and Luzhou is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Wuliangye Yibin Co 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 Wuliangye Yibin 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 Wuliangye Yibin Co 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 Wuliangye Yibin i.e., Wuliangye Yibin and Luzhou Lao go up and down completely randomly.
Pair Corralation between Wuliangye Yibin and Luzhou Lao
Assuming the 90 days trading horizon Wuliangye Yibin Co is expected to under-perform the Luzhou Lao. But the stock apears to be less risky and, when comparing its historical volatility, Wuliangye Yibin Co is 1.21 times less risky than Luzhou Lao. The stock trades about -0.04 of its potential returns per unit of risk. The Luzhou Lao Jiao is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14,000 in Luzhou Lao Jiao on August 30, 2024 and sell it today you would lose (113.00) from holding Luzhou Lao Jiao or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuliangye Yibin Co vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Wuliangye Yibin |
| Luzhou Lao Jiao |
Wuliangye Yibin and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuliangye Yibin and Luzhou Lao
The main advantage of trading using opposite Wuliangye Yibin and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuliangye Yibin 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.| Wuliangye Yibin vs. Sinomach General Machinery | Wuliangye Yibin vs. Yankershop Food Co | Wuliangye Yibin vs. China Railway Construction | Wuliangye Yibin vs. Great Sun Foods Co |
| Luzhou Lao vs. Saurer Intelligent Technology | Luzhou Lao vs. Fiberhome Telecommunication Technologies | Luzhou Lao vs. Jiujiang Shanshui Technology | Luzhou Lao vs. Western Superconducting Tech |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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