Correlation Between Lushang Property and Luenmei Quantum
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By analyzing existing cross correlation between Lushang Property Co and Luenmei Quantum Co, you can compare the effects of market volatilities on Lushang Property and Luenmei Quantum 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 Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Luenmei Quantum.
Diversification Opportunities for Lushang Property and Luenmei Quantum
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lushang and Luenmei is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum 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 Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Lushang Property i.e., Lushang Property and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Lushang Property and Luenmei Quantum
Assuming the 90 days trading horizon Lushang Property Co is expected to under-perform the Luenmei Quantum. In addition to that, Lushang Property is 1.89 times more volatile than Luenmei Quantum Co. It trades about -0.12 of its total potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.01 per unit of volatility. If you would invest 609.00 in Luenmei Quantum Co on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Luenmei Quantum Co or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lushang Property Co vs. Luenmei Quantum Co
Performance |
| Timeline |
| Lushang Property |
| Luenmei Quantum |
Lushang Property and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Luenmei Quantum
The main advantage of trading using opposite Lushang Property and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| Lushang Property vs. Industrial and Commercial | Lushang Property vs. China Construction Bank | Lushang Property vs. Bank of China | Lushang Property vs. Agricultural Bank of |
| Luenmei Quantum vs. Holitech Technology Co | Luenmei Quantum vs. Soyea Technology Co | Luenmei Quantum vs. Shengda Mining Co | Luenmei Quantum vs. Pengxin International Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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