Correlation Between Liuzhou Chemical and Lander Sports
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Lander Sports Development, you can compare the effects of market volatilities on Liuzhou Chemical and Lander Sports 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 Liuzhou Chemical with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Lander Sports.
Diversification Opportunities for Liuzhou Chemical and Lander Sports
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Liuzhou and Lander is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Lander Sports go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Lander Sports
Assuming the 90 days trading horizon Liuzhou Chemical is expected to generate 3.97 times less return on investment than Lander Sports. But when comparing it to its historical volatility, Liuzhou Chemical Industry is 1.3 times less risky than Lander Sports. It trades about 0.02 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Lander Sports Development on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Lander Sports Development or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Lander Sports Development
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Lander Sports Development |
Liuzhou Chemical and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Lander Sports
The main advantage of trading using opposite Liuzhou Chemical and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Shandong Gold Mining | Liuzhou Chemical vs. Inner Mongolia BaoTou |
| Lander Sports vs. Miracll Chemicals Co | Lander Sports vs. Shanghai Rightongene Biotechnology | Lander Sports vs. Hubei Dinglong Chemical | Lander Sports vs. Liuzhou Chemical Industry |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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