Correlation Between Lungyen Life and Space Shuttle

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Can any of the company-specific risk be diversified away by investing in both Lungyen Life and Space Shuttle at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lungyen Life and Space Shuttle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lungyen Life Service and Space Shuttle Hi Tech, you can compare the effects of market volatilities on Lungyen Life and Space Shuttle 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 Lungyen Life with a short position of Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lungyen Life and Space Shuttle.

Diversification Opportunities for Lungyen Life and Space Shuttle

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lungyen and Space is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lungyen Life Service and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi and Lungyen Life 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 Lungyen Life Service are associated (or correlated) with Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Lungyen Life i.e., Lungyen Life and Space Shuttle go up and down completely randomly.

Pair Corralation between Lungyen Life and Space Shuttle

If you would invest  1,185  in Space Shuttle Hi Tech on November 2, 2024 and sell it today you would earn a total of  30.00  from holding Space Shuttle Hi Tech or generate 2.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Lungyen Life Service  vs.  Space Shuttle Hi Tech

 Performance 
       Timeline  
Lungyen Life Service 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days Lungyen Life Service has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lungyen Life is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Space Shuttle Hi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Space Shuttle Hi Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Space Shuttle is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Lungyen Life and Space Shuttle Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lungyen Life and Space Shuttle

The main advantage of trading using opposite Lungyen Life and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lungyen Life position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle's long position.
The idea behind Lungyen Life Service and Space Shuttle Hi Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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