Correlation Between Lushang Property and Shaanxi Meineng
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By analyzing existing cross correlation between Lushang Property Co and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Lushang Property and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Shaanxi Meineng.
Diversification Opportunities for Lushang Property and Shaanxi Meineng
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lushang and Shaanxi is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Lushang Property i.e., Lushang Property and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Lushang Property and Shaanxi Meineng
Assuming the 90 days trading horizon Lushang Property Co is expected to generate 1.23 times more return on investment than Shaanxi Meineng. However, Lushang Property is 1.23 times more volatile than Shaanxi Meineng Clean. It trades about 0.06 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.04 per unit of risk. If you would invest 607.00 in Lushang Property Co on October 26, 2024 and sell it today you would earn a total of 98.00 from holding Lushang Property Co or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Lushang Property Co vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Lushang Property |
| Shaanxi Meineng Clean |
Lushang Property and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Shaanxi Meineng
The main advantage of trading using opposite Lushang Property and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng'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 |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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