Correlation Between Shenzhen Glory and Luxi Chemical
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By analyzing existing cross correlation between Shenzhen Glory Medical and Luxi Chemical Group, you can compare the effects of market volatilities on Shenzhen Glory and Luxi Chemical 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 Shenzhen Glory with a short position of Luxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Luxi Chemical.
Diversification Opportunities for Shenzhen Glory and Luxi Chemical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Luxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Luxi Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxi Chemical Group and Shenzhen Glory 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 Shenzhen Glory Medical are associated (or correlated) with Luxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxi Chemical Group has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Luxi Chemical go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Luxi Chemical
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 1.74 times more return on investment than Luxi Chemical. However, Shenzhen Glory is 1.74 times more volatile than Luxi Chemical Group. It trades about 0.17 of its potential returns per unit of risk. Luxi Chemical Group is currently generating about -0.04 per unit of risk. If you would invest 342.00 in Shenzhen Glory Medical on September 12, 2024 and sell it today you would earn a total of 41.00 from holding Shenzhen Glory Medical or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Luxi Chemical Group
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Luxi Chemical Group |
Shenzhen Glory and Luxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Luxi Chemical
The main advantage of trading using opposite Shenzhen Glory and Luxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Luxi Chemical 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 Luxi Chemical will offset losses from the drop in Luxi Chemical's long position.| Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Bank of China | Shenzhen Glory vs. PetroChina Co Ltd |
| Luxi Chemical vs. Time Publishing and | Luxi Chemical vs. Qtone Education Group | Luxi Chemical vs. Fiberhome Telecommunication Technologies | Luxi Chemical vs. Duzhe Publishing Media |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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