Correlation Between Cangzhou Mingzhu and Luolai Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Luolai Home Textile, you can compare the effects of market volatilities on Cangzhou Mingzhu and Luolai Home 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 Cangzhou Mingzhu with a short position of Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Luolai Home.
Diversification Opportunities for Cangzhou Mingzhu and Luolai Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cangzhou and Luolai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Luolai Home go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Luolai Home
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Luolai Home. But the stock apears to be less risky and, when comparing its historical volatility, Cangzhou Mingzhu Plastic is 1.28 times less risky than Luolai Home. The stock trades about -0.02 of its potential returns per unit of risk. The Luolai Home Textile is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Luolai Home Textile on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Luolai Home Textile or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Luolai Home Textile
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Luolai Home Textile |
Cangzhou Mingzhu and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Luolai Home
The main advantage of trading using opposite Cangzhou Mingzhu and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. COL Digital Publishing | Cangzhou Mingzhu vs. Suzhou Novoprotein Scientific | Cangzhou Mingzhu vs. Xiangyang Automobile Bearing |
| Luolai Home vs. BeiGene | Luolai Home vs. Kweichow Moutai Co | Luolai Home vs. Beijing Roborock Technology | Luolai Home vs. G bits Network Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |