Correlation Between Winner Medical Co and Lutian Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Winner Medical Co and Lutian Machinery Co, you can compare the effects of market volatilities on Winner Medical Co 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 Winner Medical Co with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical Co and Lutian Machinery.
Diversification Opportunities for Winner Medical Co and Lutian Machinery
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Winner and Lutian is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Winner Medical Co 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 Winner Medical Co 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 Winner Medical Co i.e., Winner Medical Co and Lutian Machinery go up and down completely randomly.
Pair Corralation between Winner Medical Co and Lutian Machinery
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 1.1 times more return on investment than Lutian Machinery. However, Winner Medical Co is 1.1 times more volatile than Lutian Machinery Co. It trades about 0.23 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.05 per unit of risk. If you would invest 3,119 in Winner Medical Co on September 1, 2024 and sell it today you would earn a total of 378.00 from holding Winner Medical Co or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Lutian Machinery Co
Performance |
| Timeline |
| Winner Medical Co |
| Lutian Machinery |
Winner Medical Co and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical Co and Lutian Machinery
The main advantage of trading using opposite Winner Medical Co and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical Co 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.| Winner Medical Co vs. Nanjing Putian Telecommunications | Winner Medical Co vs. Shenzhen Hifuture Electric | Winner Medical Co vs. Tianjin Realty Development | Winner Medical Co vs. Shenyang Huitian Thermal |
| Lutian Machinery vs. New China Life | Lutian Machinery vs. Ming Yang Smart | Lutian Machinery vs. 159681 | Lutian Machinery vs. 159005 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |