Correlation Between Long Yuan and Longmaster Information
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By analyzing existing cross correlation between Long Yuan Construction and Longmaster Information Tech, you can compare the effects of market volatilities on Long Yuan and Longmaster Information 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 Long Yuan with a short position of Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Longmaster Information.
Diversification Opportunities for Long Yuan and Longmaster Information
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Long and Longmaster is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information and Long Yuan 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 Long Yuan Construction are associated (or correlated) with Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Long Yuan i.e., Long Yuan and Longmaster Information go up and down completely randomly.
Pair Corralation between Long Yuan and Longmaster Information
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Longmaster Information. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 1.1 times less risky than Longmaster Information. The stock trades about -0.1 of its potential returns per unit of risk. The Longmaster Information Tech is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,508 in Longmaster Information Tech on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Longmaster Information Tech or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Longmaster Information Tech
Performance |
| Timeline |
| Long Yuan Construction |
| Longmaster Information |
Long Yuan and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Longmaster Information
The main advantage of trading using opposite Long Yuan and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic Technology |
| Longmaster Information vs. Ming Yang Smart | Longmaster Information vs. 159681 | Longmaster Information vs. 159005 | Longmaster Information vs. Loctek Ergonomic Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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