Correlation Between Fujian Nanwang and Luyin Investment
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By analyzing existing cross correlation between Fujian Nanwang Environment and Luyin Investment Group, you can compare the effects of market volatilities on Fujian Nanwang and Luyin Investment 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 Fujian Nanwang with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Luyin Investment.
Diversification Opportunities for Fujian Nanwang and Luyin Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Luyin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Luyin Investment go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Luyin Investment
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 1.08 times more return on investment than Luyin Investment. However, Fujian Nanwang is 1.08 times more volatile than Luyin Investment Group. It trades about 0.28 of its potential returns per unit of risk. Luyin Investment Group is currently generating about -0.33 per unit of risk. If you would invest 1,279 in Fujian Nanwang Environment on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Fujian Nanwang Environment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Luyin Investment Group
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Luyin Investment |
Fujian Nanwang and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Luyin Investment
The main advantage of trading using opposite Fujian Nanwang and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Fujian Nanwang vs. Jinxiandai Information Industry | Fujian Nanwang vs. Leyard Optoelectronic | Fujian Nanwang vs. Success Electronics | Fujian Nanwang vs. Jinlong Machinery Electronic |
| Luyin Investment vs. Gansu Jiu Steel | Luyin Investment vs. Central Plains Environment | Luyin Investment vs. Anyang Iron Steel | Luyin Investment vs. Eastroc Beverage Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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