Correlation Between Qiming Information and Luyin Investment
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By analyzing existing cross correlation between Qiming Information Technology and Luyin Investment Group, you can compare the effects of market volatilities on Qiming Information 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 Qiming Information with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiming Information and Luyin Investment.
Diversification Opportunities for Qiming Information and Luyin Investment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qiming and Luyin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Qiming Information Technology and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Qiming Information 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 Qiming Information Technology 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 Qiming Information i.e., Qiming Information and Luyin Investment go up and down completely randomly.
Pair Corralation between Qiming Information and Luyin Investment
Assuming the 90 days trading horizon Qiming Information Technology is expected to generate 2.04 times more return on investment than Luyin Investment. However, Qiming Information is 2.04 times more volatile than Luyin Investment Group. It trades about 0.04 of its potential returns per unit of risk. Luyin Investment Group is currently generating about -0.02 per unit of risk. If you would invest 1,542 in Qiming Information Technology on October 16, 2024 and sell it today you would earn a total of 387.00 from holding Qiming Information Technology or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qiming Information Technology vs. Luyin Investment Group
Performance |
| Timeline |
| Qiming Information |
| Luyin Investment |
Qiming Information and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qiming Information and Luyin Investment
The main advantage of trading using opposite Qiming Information and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiming Information 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.| Qiming Information vs. Bank of Communications | Qiming Information vs. China Satellite Communications | Qiming Information vs. Beijing Bewinner Communications | Qiming Information vs. Wintao Communications Co |
| Luyin Investment vs. Jonjee Hi tech Industrial | Luyin Investment vs. Qiming Information Technology | Luyin Investment vs. Bosera CMSK Industrial | Luyin Investment vs. Emdoor Information Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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