Correlation Between Longmaster Information and Guangdong Liantai
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By analyzing existing cross correlation between Longmaster Information Tech and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Longmaster Information and Guangdong Liantai 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 Longmaster Information with a short position of Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Guangdong Liantai.
Diversification Opportunities for Longmaster Information and Guangdong Liantai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and Guangdong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Longmaster Information i.e., Longmaster Information and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Longmaster Information and Guangdong Liantai
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 4.9 times more return on investment than Guangdong Liantai. However, Longmaster Information is 4.9 times more volatile than Guangdong Liantai Environmental. It trades about 0.31 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.09 per unit of risk. If you would invest 1,475 in Longmaster Information Tech on November 25, 2024 and sell it today you would earn a total of 411.00 from holding Longmaster Information Tech or generate 27.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Longmaster Information Tech vs. Guangdong Liantai Environmenta
Performance |
Timeline |
Longmaster Information |
Guangdong Liantai |
Longmaster Information and Guangdong Liantai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Longmaster Information and Guangdong Liantai
The main advantage of trading using opposite Longmaster Information and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.Longmaster Information vs. JCHX Mining Management | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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