Correlation Between Sharetronic Data and Lutian Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sharetronic Data Technology and Lutian Machinery Co, you can compare the effects of market volatilities on Sharetronic Data 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 Sharetronic Data with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharetronic Data and Lutian Machinery.
Diversification Opportunities for Sharetronic Data and Lutian Machinery
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sharetronic and Lutian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data Technology and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Sharetronic Data 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 Sharetronic Data Technology 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 Sharetronic Data i.e., Sharetronic Data and Lutian Machinery go up and down completely randomly.
Pair Corralation between Sharetronic Data and Lutian Machinery
Assuming the 90 days trading horizon Sharetronic Data Technology is expected to generate 2.49 times more return on investment than Lutian Machinery. However, Sharetronic Data is 2.49 times more volatile than Lutian Machinery Co. It trades about 0.11 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.02 per unit of risk. If you would invest 9,236 in Sharetronic Data Technology on September 12, 2024 and sell it today you would earn a total of 941.00 from holding Sharetronic Data Technology or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sharetronic Data Technology vs. Lutian Machinery Co
Performance |
| Timeline |
| Sharetronic Data Tec |
| Lutian Machinery |
Sharetronic Data and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharetronic Data and Lutian Machinery
The main advantage of trading using opposite Sharetronic Data and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharetronic Data 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.| Sharetronic Data vs. Lutian Machinery Co | Sharetronic Data vs. PetroChina Co Ltd | Sharetronic Data vs. Bank of China | Sharetronic Data vs. Gansu Jiu Steel |
| Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Bank of China | Lutian Machinery vs. PetroChina Co Ltd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |