Correlation Between V V and Lutian Machinery
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By analyzing existing cross correlation between V V Food and Lutian Machinery Co, you can compare the effects of market volatilities on V V and Lutian Machinery 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 V V with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Lutian Machinery.
Diversification Opportunities for V V and Lutian Machinery
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 600300 and Lutian is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and V V 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 V V Food are associated (or correlated) with Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of V V i.e., V V and Lutian Machinery go up and down completely randomly.
Pair Corralation between V V and Lutian Machinery
Assuming the 90 days trading horizon V V Food is expected to under-perform the Lutian Machinery. But the stock apears to be less risky and, when comparing its historical volatility, V V Food is 1.25 times less risky than Lutian Machinery. The stock trades about -0.01 of its potential returns per unit of risk. The Lutian Machinery Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,575 in Lutian Machinery Co on September 3, 2024 and sell it today you would lose (12.00) from holding Lutian Machinery Co or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Lutian Machinery Co
Performance |
| Timeline |
| V V Food |
| Lutian Machinery |
V V and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Lutian Machinery
The main advantage of trading using opposite V V and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| V V vs. Ningbo Ligong Online | V V vs. Ye Chiu Metal | V V vs. Tibet Huayu Mining | V V vs. Uroica Mining Safety |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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