Correlation Between Shaanxi Energy and Luyin Investment
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By analyzing existing cross correlation between Shaanxi Energy Investment and Luyin Investment Group, you can compare the effects of market volatilities on Shaanxi Energy 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 Shaanxi Energy with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Luyin Investment.
Diversification Opportunities for Shaanxi Energy and Luyin Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Luyin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Shaanxi Energy 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 Shaanxi Energy Investment 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 Shaanxi Energy i.e., Shaanxi Energy and Luyin Investment go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Luyin Investment
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to generate 0.86 times more return on investment than Luyin Investment. However, Shaanxi Energy Investment is 1.17 times less risky than Luyin Investment. It trades about 0.04 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 829.00 in Shaanxi Energy Investment on August 25, 2024 and sell it today you would earn a total of 118.00 from holding Shaanxi Energy Investment or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Luyin Investment Group
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Luyin Investment |
Shaanxi Energy and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Luyin Investment
The main advantage of trading using opposite Shaanxi Energy and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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