Correlation Between De Rucci and Longjian Road
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By analyzing existing cross correlation between De Rucci Healthy and Longjian Road Bridge, you can compare the effects of market volatilities on De Rucci and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Longjian Road.
Diversification Opportunities for De Rucci and Longjian Road
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 001323 and Longjian is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of De Rucci i.e., De Rucci and Longjian Road go up and down completely randomly.
Pair Corralation between De Rucci and Longjian Road
Assuming the 90 days trading horizon De Rucci Healthy is expected to under-perform the Longjian Road. But the stock apears to be less risky and, when comparing its historical volatility, De Rucci Healthy is 1.35 times less risky than Longjian Road. The stock trades about -0.04 of its potential returns per unit of risk. The Longjian Road Bridge is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Longjian Road Bridge on November 29, 2024 and sell it today you would earn a total of 3.00 from holding Longjian Road Bridge or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Longjian Road Bridge
Performance |
| Timeline |
| De Rucci Healthy |
| Longjian Road Bridge |
De Rucci and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Longjian Road
The main advantage of trading using opposite De Rucci and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| De Rucci vs. Jinxiandai Information Industry | De Rucci vs. Invengo Information Technology | De Rucci vs. Vanfund Urban Investment | De Rucci vs. Xiamen Insight Investment |
| Longjian Road vs. CIMC Vehicles Co | Longjian Road vs. Hengli Petrochemical Co | Longjian Road vs. Longxing Chemical Stock | Longjian Road vs. Nanning Chemical Industry |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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