Correlation Between China Securities and Luyin Investment
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By analyzing existing cross correlation between China Securities 800 and Luyin Investment Group, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Luyin Investment.
Diversification Opportunities for China Securities and Luyin Investment
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Luyin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 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 China Securities i.e., China Securities and Luyin Investment go up and down completely randomly.
Pair Corralation between China Securities and Luyin Investment
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.62 times more return on investment than Luyin Investment. However, China Securities 800 is 1.62 times less risky than Luyin Investment. It trades about 0.03 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.0 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. Luyin Investment Group
Performance |
| Timeline |
China Securities and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Luyin Investment Group
Pair trading matchups for Luyin Investment
Pair Trading with China Securities and Luyin Investment
The main advantage of trading using opposite China Securities and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| 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 |
| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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.
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