Correlation Between China Securities and Lootom Telcovideo
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By analyzing existing cross correlation between China Securities 800 and Lootom Telcovideo Network, you can compare the effects of market volatilities on China Securities and Lootom Telcovideo 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 China Securities with a short position of Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Lootom Telcovideo.
Diversification Opportunities for China Securities and Lootom Telcovideo
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Lootom is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network and China Securities 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 China Securities 800 are associated (or correlated) with Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of China Securities i.e., China Securities and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between China Securities and Lootom Telcovideo
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.47 times more return on investment than Lootom Telcovideo. However, China Securities 800 is 2.12 times less risky than Lootom Telcovideo. It trades about 0.03 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about -0.01 per unit of risk. If you would invest 383,593 in China Securities 800 on August 25, 2024 and sell it today you would earn a total of 33,959 from holding China Securities 800 or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Lootom Telcovideo Network
Performance |
| Timeline |
China Securities and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Lootom Telcovideo Network
Pair trading matchups for Lootom Telcovideo
Pair Trading with China Securities and Lootom Telcovideo
The main advantage of trading using opposite China Securities and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| China Securities vs. Yuan Longping High tech | China Securities vs. Saurer Intelligent Technology | China Securities vs. Fujian Rongji Software | China Securities vs. Jinhui Liquor Co |
| Lootom Telcovideo vs. Shenzhen MYS Environmental | Lootom Telcovideo vs. AVIC Fund Management | Lootom Telcovideo vs. Shenzhen Bingchuan Network | Lootom Telcovideo vs. Penghua Shenzhen Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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