Correlation Between De Rucci and Lingyuan Iron
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By analyzing existing cross correlation between De Rucci Healthy and Lingyuan Iron Steel, you can compare the effects of market volatilities on De Rucci and Lingyuan Iron 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 De Rucci with a short position of Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Lingyuan Iron.
Diversification Opportunities for De Rucci and Lingyuan Iron
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 001323 and Lingyuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel and De Rucci 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 De Rucci Healthy are associated (or correlated) with Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of De Rucci i.e., De Rucci and Lingyuan Iron go up and down completely randomly.
Pair Corralation between De Rucci and Lingyuan Iron
Assuming the 90 days trading horizon De Rucci is expected to generate 2.37 times less return on investment than Lingyuan Iron. But when comparing it to its historical volatility, De Rucci Healthy is 1.46 times less risky than Lingyuan Iron. It trades about 0.02 of its potential returns per unit of risk. Lingyuan Iron Steel is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Lingyuan Iron Steel on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Lingyuan Iron Steel or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Lingyuan Iron Steel
Performance |
| Timeline |
| De Rucci Healthy |
| Lingyuan Iron Steel |
De Rucci and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Lingyuan Iron
The main advantage of trading using opposite De Rucci and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron's long position.| De Rucci vs. China Petroleum Chemical | De Rucci vs. PetroChina Co Ltd | De Rucci vs. China State Construction | De Rucci vs. China Railway Group |
| Lingyuan Iron vs. Xinhua Winshare Publishing | Lingyuan Iron vs. Yunnan Jianzhijia Health Chain | Lingyuan Iron vs. Impulse Qingdao Health | Lingyuan Iron vs. De Rucci Healthy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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