Correlation Between Beijing SPC and Luyin Investment
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By analyzing existing cross correlation between Beijing SPC Environment and Luyin Investment Group, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Luyin Investment.
Diversification Opportunities for Beijing SPC and Luyin Investment
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Luyin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Luyin Investment go up and down completely randomly.
Pair Corralation between Beijing SPC and Luyin Investment
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Luyin Investment. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.08 times less risky than Luyin Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Luyin Investment Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 612.00 in Luyin Investment Group on September 15, 2024 and sell it today you would earn a total of 34.00 from holding Luyin Investment Group or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Luyin Investment Group
Performance |
| Timeline |
| Beijing SPC Environment |
| Luyin Investment |
Beijing SPC and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Luyin Investment
The main advantage of trading using opposite Beijing SPC and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Kweichow Moutai Co | Beijing SPC vs. Contemporary Amperex Technology | Beijing SPC vs. G bits Network Technology | Beijing SPC vs. BYD Co Ltd |
| Luyin Investment vs. Focus Media Information | Luyin Investment vs. Guangdong Liantai Environmental | Luyin Investment vs. Beijing SPC Environment | Luyin Investment vs. Dawning Information Industry |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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