Correlation Between Do Fluoride and Luyin Investment
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Luyin Investment Group, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Luyin Investment.
Diversification Opportunities for Do Fluoride and Luyin Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002407 and Luyin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and Luyin Investment go up and down completely randomly.
Pair Corralation between Do Fluoride and Luyin Investment
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to generate 0.94 times more return on investment than Luyin Investment. However, Do Fluoride Chemicals Co is 1.06 times less risky than Luyin Investment. It trades about -0.41 of its potential returns per unit of risk. Luyin Investment Group is currently generating about -0.43 per unit of risk. If you would invest 1,296 in Do Fluoride Chemicals Co on October 16, 2024 and sell it today you would lose (171.00) from holding Do Fluoride Chemicals Co or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Luyin Investment Group
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Luyin Investment |
Do Fluoride and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Luyin Investment
The main advantage of trading using opposite Do Fluoride and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Mengtian Home Group | Do Fluoride vs. Hainan Airlines Co | Do Fluoride vs. Dr Peng Telecom | Do Fluoride vs. Telling Telecommunication Holding |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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