Correlation Between Lushang Property and Guangzhou Shiyuan
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By analyzing existing cross correlation between Lushang Property Co and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Lushang Property and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Guangzhou Shiyuan.
Diversification Opportunities for Lushang Property and Guangzhou Shiyuan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lushang and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Lushang Property i.e., Lushang Property and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Lushang Property and Guangzhou Shiyuan
Assuming the 90 days trading horizon Lushang Property Co is expected to under-perform the Guangzhou Shiyuan. In addition to that, Lushang Property is 1.07 times more volatile than Guangzhou Shiyuan Electronic. It trades about -0.03 of its total potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about -0.03 per unit of volatility. If you would invest 5,864 in Guangzhou Shiyuan Electronic on September 4, 2024 and sell it today you would lose (1,990) from holding Guangzhou Shiyuan Electronic or give up 33.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lushang Property Co vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Lushang Property |
| Guangzhou Shiyuan |
Lushang Property and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Guangzhou Shiyuan
The main advantage of trading using opposite Lushang Property and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Lushang Property vs. PKU HealthCare Corp | Lushang Property vs. Innovative Medical Management | Lushang Property vs. Healthcare Co | Lushang Property vs. Meinian Onehealth Healthcare |
| Guangzhou Shiyuan vs. Qtone Education Group | Guangzhou Shiyuan vs. Time Publishing and | Guangzhou Shiyuan vs. Focus Media Information | Guangzhou Shiyuan vs. Changjiang Publishing Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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