Correlation Between Luolai Home and Strait Innovation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luolai Home Textile and Strait Innovation Internet, you can compare the effects of market volatilities on Luolai Home and Strait Innovation 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 Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Strait Innovation.
Diversification Opportunities for Luolai Home and Strait Innovation
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luolai and Strait is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation 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 Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of Luolai Home i.e., Luolai Home and Strait Innovation go up and down completely randomly.
Pair Corralation between Luolai Home and Strait Innovation
Assuming the 90 days trading horizon Luolai Home Textile is expected to generate 0.55 times more return on investment than Strait Innovation. However, Luolai Home Textile is 1.81 times less risky than Strait Innovation. It trades about -0.14 of its potential returns per unit of risk. Strait Innovation Internet is currently generating about -0.19 per unit of risk. If you would invest 819.00 in Luolai Home Textile on October 19, 2024 and sell it today you would lose (56.00) from holding Luolai Home Textile or give up 6.84% 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. Strait Innovation Internet
Performance |
| Timeline |
| Luolai Home Textile |
| Strait Innovation |
Luolai Home and Strait Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Strait Innovation
The main advantage of trading using opposite Luolai Home and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.| Luolai Home vs. Ningbo Homelink Eco iTech | Luolai Home vs. Shanghai Shuixing Home | Luolai Home vs. CICC Fund Management | Luolai Home vs. Qumei Furniture Group |
| Strait Innovation vs. Cansino Biologics | Strait Innovation vs. Nanxing Furniture Machinery | Strait Innovation vs. Shandong Homey Aquatic | Strait Innovation vs. Luolai Home Textile |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |