Correlation Between Luolai Home and Shenzhen Centralcon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luolai Home Textile and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Luolai Home and Shenzhen Centralcon 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 Luolai Home with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Shenzhen Centralcon.
Diversification Opportunities for Luolai Home and Shenzhen Centralcon
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luolai and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Luolai Home 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 Luolai Home Textile are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Luolai Home i.e., Luolai Home and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Luolai Home and Shenzhen Centralcon
Assuming the 90 days trading horizon Luolai Home Textile is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Luolai Home Textile is 2.12 times less risky than Shenzhen Centralcon. The stock trades about 0.0 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Shenzhen Centralcon Investment on September 1, 2024 and sell it today you would lose (120.00) from holding Shenzhen Centralcon Investment or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luolai Home Textile vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Luolai Home Textile |
| Shenzhen Centralcon |
Luolai Home and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Shenzhen Centralcon
The main advantage of trading using opposite Luolai Home and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Luolai Home vs. Chengdu Kanghua Biological | Luolai Home vs. Beijing Wantai Biological | Luolai Home vs. Suzhou Novoprotein Scientific | Luolai Home vs. Aluminum Corp of |
| Shenzhen Centralcon vs. Anhui Huilong Agricultural | Shenzhen Centralcon vs. Huitong Construction Group | Shenzhen Centralcon vs. Kuangda Technology Group | Shenzhen Centralcon vs. Allied Machinery 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |