Correlation Between Shanxi Lanhua and Grandblue Environment
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By analyzing existing cross correlation between Shanxi Lanhua Sci Tech and Grandblue Environment Co, you can compare the effects of market volatilities on Shanxi Lanhua and Grandblue Environment 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 Shanxi Lanhua with a short position of Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Lanhua and Grandblue Environment.
Diversification Opportunities for Shanxi Lanhua and Grandblue Environment
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanxi and Grandblue is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Lanhua Sci Tech and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment and Shanxi Lanhua 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 Shanxi Lanhua Sci Tech are associated (or correlated) with Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Shanxi Lanhua i.e., Shanxi Lanhua and Grandblue Environment go up and down completely randomly.
Pair Corralation between Shanxi Lanhua and Grandblue Environment
Assuming the 90 days trading horizon Shanxi Lanhua Sci Tech is expected to generate 1.52 times more return on investment than Grandblue Environment. However, Shanxi Lanhua is 1.52 times more volatile than Grandblue Environment Co. It trades about 0.06 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.05 per unit of risk. If you would invest 796.00 in Shanxi Lanhua Sci Tech on September 21, 2024 and sell it today you would earn a total of 97.00 from holding Shanxi Lanhua Sci Tech or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanxi Lanhua Sci Tech vs. Grandblue Environment Co
Performance |
| Timeline |
| Shanxi Lanhua Sci |
| Grandblue Environment |
Shanxi Lanhua and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanxi Lanhua and Grandblue Environment
The main advantage of trading using opposite Shanxi Lanhua and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Lanhua position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Shanxi Lanhua vs. Tongyu Communication | Shanxi Lanhua vs. Guangdong Shenglu Telecommunication | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Zhongshan Public Utilities |
| Grandblue Environment vs. Luyin Investment Group | Grandblue Environment vs. Kunwu Jiuding Investment | Grandblue Environment vs. Shanxi Lanhua Sci Tech | Grandblue Environment vs. Chengdu Xingrong Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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