Correlation Between Lingyuan Iron and Xingyuan Environment
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By analyzing existing cross correlation between Lingyuan Iron Steel and Xingyuan Environment Technology, you can compare the effects of market volatilities on Lingyuan Iron and Xingyuan Environment 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 Lingyuan Iron with a short position of Xingyuan Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lingyuan Iron and Xingyuan Environment.
Diversification Opportunities for Lingyuan Iron and Xingyuan Environment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lingyuan and Xingyuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lingyuan Iron Steel and Xingyuan Environment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingyuan Environment and Lingyuan Iron 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 Lingyuan Iron Steel are associated (or correlated) with Xingyuan Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingyuan Environment has no effect on the direction of Lingyuan Iron i.e., Lingyuan Iron and Xingyuan Environment go up and down completely randomly.
Pair Corralation between Lingyuan Iron and Xingyuan Environment
Assuming the 90 days trading horizon Lingyuan Iron is expected to generate 6.12 times less return on investment than Xingyuan Environment. But when comparing it to its historical volatility, Lingyuan Iron Steel is 2.68 times less risky than Xingyuan Environment. It trades about 0.05 of its potential returns per unit of risk. Xingyuan Environment Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 265.00 in Xingyuan Environment Technology on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Xingyuan Environment Technology or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lingyuan Iron Steel vs. Xingyuan Environment Technolog
Performance |
| Timeline |
| Lingyuan Iron Steel |
| Xingyuan Environment |
Lingyuan Iron and Xingyuan Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lingyuan Iron and Xingyuan Environment
The main advantage of trading using opposite Lingyuan Iron and Xingyuan Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lingyuan Iron position performs unexpectedly, Xingyuan Environment 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 Xingyuan Environment will offset losses from the drop in Xingyuan Environment's long position.| Lingyuan Iron vs. Niutech Environment Technology | Lingyuan Iron vs. CGN Nuclear Technology | Lingyuan Iron vs. Holitech Technology Co | Lingyuan Iron vs. Peoples Insurance of |
| Xingyuan Environment vs. Biwin Storage Technology | Xingyuan Environment vs. PetroChina Co Ltd | Xingyuan Environment vs. Industrial and Commercial | Xingyuan Environment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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