Correlation Between Xinjiang Communications and Luyin Investment
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By analyzing existing cross correlation between Xinjiang Communications Construction and Luyin Investment Group, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Luyin Investment.
Diversification Opportunities for Xinjiang Communications and Luyin Investment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Luyin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Luyin Investment go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Luyin Investment
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.55 times more return on investment than Luyin Investment. However, Xinjiang Communications is 1.55 times more volatile than Luyin Investment Group. It trades about 0.01 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.0 per unit of risk. If you would invest 1,312 in Xinjiang Communications Construction on September 3, 2024 and sell it today you would lose (32.00) from holding Xinjiang Communications Construction or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Luyin Investment Group
Performance |
| Timeline |
| Xinjiang Communications |
| Luyin Investment |
Xinjiang Communications and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Luyin Investment
The main advantage of trading using opposite Xinjiang Communications and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology Co |
| Luyin Investment vs. Hunan Investment Group | Luyin Investment vs. King Strong New Material | Luyin Investment vs. Super Dragon Engineering Plastics | Luyin Investment vs. Anhui Deli Household |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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