Correlation Between Long Yuan and Niutech Environment
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By analyzing existing cross correlation between Long Yuan Construction and Niutech Environment Technology, you can compare the effects of market volatilities on Long Yuan and Niutech 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 Long Yuan with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Niutech Environment.
Diversification Opportunities for Long Yuan and Niutech Environment
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Long and Niutech is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Long Yuan i.e., Long Yuan and Niutech Environment go up and down completely randomly.
Pair Corralation between Long Yuan and Niutech Environment
Assuming the 90 days trading horizon Long Yuan Construction is expected to generate 1.07 times more return on investment than Niutech Environment. However, Long Yuan is 1.07 times more volatile than Niutech Environment Technology. It trades about 0.12 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.03 per unit of risk. If you would invest 250.00 in Long Yuan Construction on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Long Yuan Construction or generate 53.2% 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. Niutech Environment Technology
Performance |
| Timeline |
| Long Yuan Construction |
| Niutech Environment |
Long Yuan and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Niutech Environment
The main advantage of trading using opposite Long Yuan and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Niutech 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Long Yuan vs. Hua Xia Bank | Long Yuan vs. Allwin Telecommunication Co | Long Yuan vs. Agricultural Bank of | Long Yuan vs. Sunwave Communications Co |
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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