Correlation Between 159005 and China Longyuan
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By analyzing existing cross correlation between 159005 and China Longyuan Power, you can compare the effects of market volatilities on 159005 and China Longyuan 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 159005 with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and China Longyuan.
Diversification Opportunities for 159005 and China Longyuan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 159005 and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and 159005 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 159005 are associated (or correlated) with China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of 159005 i.e., 159005 and China Longyuan go up and down completely randomly.
Pair Corralation between 159005 and China Longyuan
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than China Longyuan. However, 159005 is 69.34 times less risky than China Longyuan. It trades about 0.2 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.01 per unit of risk. If you would invest 9,856 in 159005 on September 20, 2024 and sell it today you would earn a total of 144.00 from holding 159005 or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. China Longyuan Power
Performance |
| Timeline |
| 159005 |
| China Longyuan Power |
159005 and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and China Longyuan
The main advantage of trading using opposite 159005 and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| 159005 vs. Shenzhen MTC Co | 159005 vs. Ming Yang Smart | 159005 vs. Changzhou Almaden Co | 159005 vs. 159681 |
| China Longyuan vs. Ming Yang Smart | China Longyuan vs. 159681 | China Longyuan vs. 159005 | China Longyuan vs. Loctek Ergonomic 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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