Correlation Between Longxing Chemical and Longmaster Information
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By analyzing existing cross correlation between Longxing Chemical Stock and Longmaster Information Tech, you can compare the effects of market volatilities on Longxing Chemical and Longmaster Information 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 Longxing Chemical with a short position of Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Longmaster Information.
Diversification Opportunities for Longxing Chemical and Longmaster Information
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Longxing and Longmaster is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information and Longxing Chemical 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 Longxing Chemical Stock are associated (or correlated) with Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Longmaster Information go up and down completely randomly.
Pair Corralation between Longxing Chemical and Longmaster Information
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.34 times more return on investment than Longmaster Information. However, Longxing Chemical is 1.34 times more volatile than Longmaster Information Tech. It trades about 0.04 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about -0.13 per unit of risk. If you would invest 546.00 in Longxing Chemical Stock on October 31, 2024 and sell it today you would earn a total of 10.00 from holding Longxing Chemical Stock or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Longmaster Information Tech
Performance |
| Timeline |
| Longxing Chemical Stock |
| Longmaster Information |
Longxing Chemical and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Longmaster Information
The main advantage of trading using opposite Longxing Chemical and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Longxing Chemical vs. Wintao Communications Co | Longxing Chemical vs. Nanxing Furniture Machinery | Longxing Chemical vs. Bank of Communications | Longxing Chemical vs. Runjian Communication Co |
| Longmaster Information vs. Pengxin International Mining | Longmaster Information vs. Do Fluoride Chemicals Co | Longmaster Information vs. Guangdong Silvere Sci | Longmaster Information vs. Zijin Mining Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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