Correlation Between Luenmei Quantum and Dongjiang Environmental
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By analyzing existing cross correlation between Luenmei Quantum Co and Dongjiang Environmental Co, you can compare the effects of market volatilities on Luenmei Quantum and Dongjiang Environmental 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 Luenmei Quantum with a short position of Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luenmei Quantum and Dongjiang Environmental.
Diversification Opportunities for Luenmei Quantum and Dongjiang Environmental
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luenmei and Dongjiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Luenmei Quantum Co and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental and Luenmei Quantum 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 Luenmei Quantum Co are associated (or correlated) with Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of Luenmei Quantum i.e., Luenmei Quantum and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between Luenmei Quantum and Dongjiang Environmental
Assuming the 90 days trading horizon Luenmei Quantum Co is expected to generate 0.75 times more return on investment than Dongjiang Environmental. However, Luenmei Quantum Co is 1.33 times less risky than Dongjiang Environmental. It trades about 0.01 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about -0.01 per unit of risk. If you would invest 643.00 in Luenmei Quantum Co on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Luenmei Quantum Co or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luenmei Quantum Co vs. Dongjiang Environmental Co
Performance |
| Timeline |
| Luenmei Quantum |
| Dongjiang Environmental |
Luenmei Quantum and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luenmei Quantum and Dongjiang Environmental
The main advantage of trading using opposite Luenmei Quantum and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luenmei Quantum position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental's long position.| Luenmei Quantum vs. Sanbo Hospital Management | Luenmei Quantum vs. SUNSEA Telecommunications Co | Luenmei Quantum vs. China Satellite Communications | Luenmei Quantum vs. Shanghai CEO Environmental |
| Dongjiang Environmental vs. Cultural Investment Holdings | Dongjiang Environmental vs. Gome Telecom Equipment | Dongjiang Environmental vs. Bus Online Co | Dongjiang Environmental vs. Holitech Technology Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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