Correlation Between Lingyuan Iron and Kunshan Guoli
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lingyuan Iron Steel and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Lingyuan Iron and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lingyuan Iron and Kunshan Guoli.
Diversification Opportunities for Lingyuan Iron and Kunshan Guoli
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lingyuan and Kunshan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lingyuan Iron Steel and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Lingyuan Iron i.e., Lingyuan Iron and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Lingyuan Iron and Kunshan Guoli
Assuming the 90 days trading horizon Lingyuan Iron Steel is expected to generate 0.66 times more return on investment than Kunshan Guoli. However, Lingyuan Iron Steel is 1.51 times less risky than Kunshan Guoli. It trades about 0.14 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.02 per unit of risk. If you would invest 193.00 in Lingyuan Iron Steel on September 4, 2024 and sell it today you would earn a total of 15.00 from holding Lingyuan Iron Steel or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lingyuan Iron Steel vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Lingyuan Iron Steel |
| Kunshan Guoli Electronic |
Lingyuan Iron and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lingyuan Iron and Kunshan Guoli
The main advantage of trading using opposite Lingyuan Iron and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lingyuan Iron position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Lingyuan Iron vs. FSPG Hi Tech Co | Lingyuan Iron vs. Suzhou Mingzhi Technology | Lingyuan Iron vs. Jiangsu Yanghe Brewery | Lingyuan Iron vs. Guangdong Shenglu Telecommunication |
| Kunshan Guoli vs. Changchun UP Optotech | Kunshan Guoli vs. Lingyuan Iron Steel | Kunshan Guoli vs. GreenTech Environmental Co | Kunshan Guoli vs. Sinosteel Engineering and |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |