Correlation Between Ciwen Media and Lutian Machinery
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By analyzing existing cross correlation between Ciwen Media Co and Lutian Machinery Co, you can compare the effects of market volatilities on Ciwen Media and Lutian Machinery 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 Ciwen Media with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Lutian Machinery.
Diversification Opportunities for Ciwen Media and Lutian Machinery
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ciwen and Lutian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Ciwen Media 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 Ciwen Media Co are associated (or correlated) with Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Ciwen Media i.e., Ciwen Media and Lutian Machinery go up and down completely randomly.
Pair Corralation between Ciwen Media and Lutian Machinery
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 1.97 times more return on investment than Lutian Machinery. However, Ciwen Media is 1.97 times more volatile than Lutian Machinery Co. It trades about 0.03 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.01 per unit of risk. If you would invest 588.00 in Ciwen Media Co on September 3, 2024 and sell it today you would earn a total of 162.00 from holding Ciwen Media Co or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. Lutian Machinery Co
Performance |
| Timeline |
| Ciwen Media |
| Lutian Machinery |
Ciwen Media and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Lutian Machinery
The main advantage of trading using opposite Ciwen Media and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Ciwen Media vs. Lander Sports Development | Ciwen Media vs. De Rucci Healthy | Ciwen Media vs. Humanwell Healthcare Group | Ciwen Media vs. By health |
| Lutian Machinery vs. Cultural Investment Holdings | Lutian Machinery vs. Gome Telecom Equipment | Lutian Machinery vs. Bus Online Co | Lutian Machinery vs. Holitech Technology 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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