Correlation Between Suzhou Maxwell and Lutian Machinery
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By analyzing existing cross correlation between Suzhou Maxwell Technologies and Lutian Machinery Co, you can compare the effects of market volatilities on Suzhou Maxwell and Lutian Machinery 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 Suzhou Maxwell with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Maxwell and Lutian Machinery.
Diversification Opportunities for Suzhou Maxwell and Lutian Machinery
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Lutian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Maxwell Technologies and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Suzhou Maxwell 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 Suzhou Maxwell Technologies are associated (or correlated) with Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Suzhou Maxwell i.e., Suzhou Maxwell and Lutian Machinery go up and down completely randomly.
Pair Corralation between Suzhou Maxwell and Lutian Machinery
Assuming the 90 days trading horizon Suzhou Maxwell Technologies is expected to generate 1.62 times more return on investment than Lutian Machinery. However, Suzhou Maxwell is 1.62 times more volatile than Lutian Machinery Co. It trades about 0.03 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.03 per unit of risk. If you would invest 10,762 in Suzhou Maxwell Technologies on August 29, 2024 and sell it today you would earn a total of 1,268 from holding Suzhou Maxwell Technologies or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Maxwell Technologies vs. Lutian Machinery Co
Performance |
| Timeline |
| Suzhou Maxwell Techn |
| Lutian Machinery |
Suzhou Maxwell and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Maxwell and Lutian Machinery
The main advantage of trading using opposite Suzhou Maxwell and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Maxwell position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Suzhou Maxwell vs. Beijing Wandong Medical | Suzhou Maxwell vs. CareRay Digital Medical | Suzhou Maxwell vs. Blue Sail Medical | Suzhou Maxwell vs. Innovative Medical Management |
| Lutian Machinery vs. Winner Medical Co | Lutian Machinery vs. Shengda Mining Co | Lutian Machinery vs. Guangdong Silvere Sci | Lutian Machinery vs. Guocheng Mining Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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