Correlation Between Xinxiang Chemical and Luyin Investment
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By analyzing existing cross correlation between Xinxiang Chemical Fiber and Luyin Investment Group, you can compare the effects of market volatilities on Xinxiang Chemical 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 Xinxiang Chemical with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Luyin Investment.
Diversification Opportunities for Xinxiang Chemical and Luyin Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinxiang and Luyin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Xinxiang Chemical 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 Xinxiang Chemical Fiber 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 Xinxiang Chemical i.e., Xinxiang Chemical and Luyin Investment go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Luyin Investment
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 1.61 times more return on investment than Luyin Investment. However, Xinxiang Chemical is 1.61 times more volatile than Luyin Investment Group. It trades about 0.05 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.02 per unit of risk. If you would invest 337.00 in Xinxiang Chemical Fiber on September 14, 2024 and sell it today you would earn a total of 117.00 from holding Xinxiang Chemical Fiber or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. Luyin Investment Group
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| Luyin Investment |
Xinxiang Chemical and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and Luyin Investment
The main advantage of trading using opposite Xinxiang Chemical and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical 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.| Xinxiang Chemical vs. Luyin Investment Group | Xinxiang Chemical vs. Anji Foodstuff Co | Xinxiang Chemical vs. Beijing Sanyuan Foods | Xinxiang Chemical vs. Tieling Newcity Investment |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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