Correlation Between Shaanxi Meineng and Lushang Property
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Lushang Property Co, you can compare the effects of market volatilities on Shaanxi Meineng and Lushang Property 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 Meineng with a short position of Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Lushang Property.
Diversification Opportunities for Shaanxi Meineng and Lushang Property
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shaanxi and Lushang is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property and Shaanxi Meineng 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 Meineng Clean are associated (or correlated) with Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Lushang Property go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Lushang Property
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 0.88 times more return on investment than Lushang Property. However, Shaanxi Meineng Clean is 1.13 times less risky than Lushang Property. It trades about 0.12 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.1 per unit of risk. If you would invest 1,212 in Shaanxi Meineng Clean on November 5, 2024 and sell it today you would earn a total of 43.00 from holding Shaanxi Meineng Clean or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Lushang Property Co
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Lushang Property |
Shaanxi Meineng and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Lushang Property
The main advantage of trading using opposite Shaanxi Meineng and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Shaanxi Meineng vs. Agricultural Bank of | Shaanxi Meineng vs. Industrial and Commercial | Shaanxi Meineng vs. Bank of China | Shaanxi Meineng vs. China Construction Bank |
| Lushang Property vs. New Hope Dairy | Lushang Property vs. Quectel Wireless Solutions | Lushang Property vs. Guilin Seamild Foods | Lushang Property vs. Yan Tai Shuang |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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