Correlation Between Renxin New and Lander Sports
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By analyzing existing cross correlation between Renxin New Material and Lander Sports Development, you can compare the effects of market volatilities on Renxin New and Lander Sports 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 Renxin New with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Lander Sports.
Diversification Opportunities for Renxin New and Lander Sports
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Renxin and Lander is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Renxin New 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 Renxin New Material are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Renxin New i.e., Renxin New and Lander Sports go up and down completely randomly.
Pair Corralation between Renxin New and Lander Sports
Assuming the 90 days trading horizon Renxin New is expected to generate 2.86 times less return on investment than Lander Sports. In addition to that, Renxin New is 1.05 times more volatile than Lander Sports Development. It trades about 0.02 of its total potential returns per unit of risk. Lander Sports Development is currently generating about 0.06 per unit of volatility. If you would invest 251.00 in Lander Sports Development on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Lander Sports Development or generate 21.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renxin New Material vs. Lander Sports Development
Performance |
| Timeline |
| Renxin New Material |
| Lander Sports Development |
Renxin New and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and Lander Sports
The main advantage of trading using opposite Renxin New and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Renxin New vs. Zijin Mining Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Rongsheng Petrochemical Co | Renxin New vs. Hoshine Silicon Ind |
| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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