Correlation Between Luyin Investment and Shenzhen Centralcon
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By analyzing existing cross correlation between Luyin Investment Group and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Luyin Investment and Shenzhen Centralcon 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 Luyin Investment with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Shenzhen Centralcon.
Diversification Opportunities for Luyin Investment and Shenzhen Centralcon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Luyin Investment 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 Luyin Investment Group are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Luyin Investment i.e., Luyin Investment and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Luyin Investment and Shenzhen Centralcon
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.64 times more return on investment than Shenzhen Centralcon. However, Luyin Investment Group is 1.56 times less risky than Shenzhen Centralcon. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.02 per unit of risk. If you would invest 655.00 in Luyin Investment Group on November 7, 2024 and sell it today you would lose (69.00) from holding Luyin Investment Group or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Luyin Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenzhen Centralcon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luyin Investment and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Shenzhen Centralcon
The main advantage of trading using opposite Luyin Investment and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.The idea behind Luyin Investment Group and Shenzhen Centralcon Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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