Correlation Between Lushang Property and Gansu Huangtai
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By analyzing existing cross correlation between Lushang Property Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Lushang Property and Gansu Huangtai 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 Lushang Property with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Gansu Huangtai.
Diversification Opportunities for Lushang Property and Gansu Huangtai
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lushang and Gansu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Lushang Property 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 Lushang Property Co are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Lushang Property i.e., Lushang Property and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Lushang Property and Gansu Huangtai
Assuming the 90 days trading horizon Lushang Property is expected to generate 4.11 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Lushang Property Co is 1.68 times less risky than Gansu Huangtai. It trades about 0.06 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 814.00 in Gansu Huangtai Wine marketing on October 26, 2024 and sell it today you would earn a total of 774.00 from holding Gansu Huangtai Wine marketing or generate 95.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Lushang Property Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Lushang Property |
| Gansu Huangtai Wine |
Lushang Property and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Gansu Huangtai
The main advantage of trading using opposite Lushang Property and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Lushang Property vs. AVIC Fund Management | Lushang Property vs. Harvest Fund Management | Lushang Property vs. Jiujiang Shanshui Technology | Lushang Property vs. Cicc Fund Management |
| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Petroleum Chemical | Gansu Huangtai vs. China Construction Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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