Correlation Between Saurer Intelligent and Luzhou Lao
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By analyzing existing cross correlation between Saurer Intelligent Technology and Luzhou Lao Jiao, you can compare the effects of market volatilities on Saurer Intelligent and Luzhou Lao 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 Saurer Intelligent with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Luzhou Lao.
Diversification Opportunities for Saurer Intelligent and Luzhou Lao
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saurer and Luzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao and Saurer Intelligent 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 Saurer Intelligent Technology are associated (or correlated) with Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Luzhou Lao go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Luzhou Lao
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 1.34 times more return on investment than Luzhou Lao. However, Saurer Intelligent is 1.34 times more volatile than Luzhou Lao Jiao. It trades about -0.01 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.04 per unit of risk. If you would invest 296.00 in Saurer Intelligent Technology on September 1, 2024 and sell it today you would lose (78.00) from holding Saurer Intelligent Technology or give up 26.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.77% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Saurer Intelligent |
| Luzhou Lao Jiao |
Saurer Intelligent and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Luzhou Lao
The main advantage of trading using opposite Saurer Intelligent and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| Saurer Intelligent vs. China Petroleum Chemical | Saurer Intelligent vs. PetroChina Co Ltd | Saurer Intelligent vs. China State Construction | Saurer Intelligent vs. China Railway Group |
| Luzhou Lao vs. China Petroleum Chemical | Luzhou Lao vs. PetroChina Co Ltd | Luzhou Lao vs. China State Construction | Luzhou Lao vs. China Railway Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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