Correlation Between Longxing Chemical and Epoxy Base
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By analyzing existing cross correlation between Longxing Chemical Stock and Epoxy Base Electronic, you can compare the effects of market volatilities on Longxing Chemical and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Epoxy Base.
Diversification Opportunities for Longxing Chemical and Epoxy Base
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Longxing and Epoxy is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Epoxy Base go up and down completely randomly.
Pair Corralation between Longxing Chemical and Epoxy Base
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.19 times more return on investment than Epoxy Base. However, Longxing Chemical is 1.19 times more volatile than Epoxy Base Electronic. It trades about 0.04 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.04 per unit of risk. If you would invest 534.00 in Longxing Chemical Stock on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Longxing Chemical Stock or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Epoxy Base Electronic
Performance |
| Timeline |
| Longxing Chemical Stock |
| Epoxy Base Electronic |
Longxing Chemical and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Epoxy Base
The main advantage of trading using opposite Longxing Chemical and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Longxing Chemical vs. Beijing Baolande Software | Longxing Chemical vs. GuoChuang Software Co | Longxing Chemical vs. Northern United Publishing | Longxing Chemical vs. Guotai Epoint Software |
| Epoxy Base vs. Eyebright Medical Technology | Epoxy Base vs. Jinyu Bio Technology Co | Epoxy Base vs. Hubei Forbon Technology | Epoxy Base vs. Uxi Unicomp Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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